ITP Extends the Acquisition Agreement to Acquire Hebei Tengsheng Paper Co. Ltd.

Release time: 2019-12-23

BAODING, China, December, 23 2019 -- IT Tech Packaging, Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that its major operating entity Hebei Baoding Dongfang Paper Milling Co., Ltd.(“Dongfang Paper) has entered into a supplementary acquisition Agreement (the “Supplementary Agreement”) with Hebei Tengsheng Paper Co., Ltd.(“Tengsheng Paper”)and its shareholders.

Both parties agreed to extend the acquisition agreement signed on June 25, 2019,for acquiring 100% equity interests and all right, title and interest in and to all assets owned by Tengsheng Paper. Pursuant to the Supplementary Agreement entered into on December 16, 2019 ,Dongfang Paper will pay to Tengsheng Paper the purchase price in cash no later than December 31, 2021 unless further agreements reached.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of IT Tech Packaging commented, “We believe the extension of the purchase price payment will improve our financial liquidity and reduce the working capital deficit. With operation of the two tissue paper production lines, we expect sustained cash flow will be generated in 2020. .”

About IT Tech Packaging, Inc.

Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE MKT since December 2009.

Safe Harbor Statements

This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.

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