Orient Paper Moving Into Digital Paper Market
Oct. 8, 2009 - Orient Paper, Inc., which controls and operates Hebei Baoding Orient Paper Milling Co., Ltd. (HBOP), a manufacturer and distributor of diversified paper products in Hebei, China, said that it has successfully closed a private placement financing to support its future growth.
In the transaction that closed on October 7, Orient issued approximately 8.3 million pre-reverse split shares of its common stock for an approximate aggregate purchase price of $5 million. No warrants are issued or issuable in the transaction. The participants in the private placement included institutional investors with extensive experience investing in the People's Republic of China including Access America Fund, LP, three funds under the common control of Renaissance Capital, Pope Investments II, LLC and Steve Mazur, Orient Paper said..
The company intends to use the proceeds to enter the digital photo paper market through the acquisition of a digital photo paper plant and for other general corporate purposes.
"We are very pleased to announce that Orient Paper has successfully attracted support from well respected institutional investors in the U.S. capital markets. We believe that the proceeds from this financing, along with our existing cash resources, will enable Orient Paper to execute our strategy to move into the digital photo paper segment so as to accelerate our future growth and expand our margins," said Mr. Liu Zhenyong, CEO of Orient Paper.
SOURCE: Orient Paper, Inc.