- IT Tech Packaging (ITP, Financial) announces a public offering of 6,899,500 shares at $0.20 per share.
- The offering is expected to generate gross proceeds of approximately $1.4 million.
- Proceeds will be used for working capital and general corporate purposes, closing by May 14, 2025.
IT Tech Packaging, Inc. (ITP), a prominent manufacturer and distributor of diversified paper products based in North China, has declared the pricing of a public offering consisting of 6,899,500 shares of its common stock at $0.20 per share. The company anticipates raising about $1.4 million in gross proceeds from this offering before the deduction of fees and expenses. This public offering is expected to conclude on May 14, 2025, subject to customary closing conditions.
Maxim Group LLC is serving as the sole placement agent for this offering. IT Tech Packaging plans to utilize the net proceeds from this offering for working capital and other general corporate needs. The offering is taking place under a shelf registration statement that was made effective by the SEC on April 14, 2023.
This public offering signals a substantial addition of nearly 7 million shares to the market, reflecting considerable dilution of the existing shareholder base. The offering price at a mere $0.20 per share suggests potential financial distress or challenging market conditions, given that NYSE American-listed stocks typically trade at much higher prices.
IT Tech Packaging produces a range of paper products including corrugating medium paper, offset printing paper, and tissue paper, primarily using recycled materials. With its operations strategically located in North China's Hebei Province, the company is well-positioned near key industrial regions like Beijing and Tianjin.
