In January, a few traders discovered the company and pushed the share price from $0.6 to more than $1.0.

It is difficult to say whether the market capitalization will continue to trade higher. However, with the number of COVID-19 cases in China, ITP’s current business model can generate a significant amount of stock demand.
The financials of IT Tech Packaging are interesting. The company reports a significant amount of machinery and equipment to produce paper and face masks.
IT Tech Packaging also reports more than $8 million in cash, which could serve to launch marketing campaigns in the near future. With regards to the current amount of liabilities, I wouldn’t expect most investors to worry much:
Besides, the company is currently organizing the sale of new equity. If the management can raise sufficient capital to produce more face masks, sales could increase in the near future.
IT Tech Packaging, Inc. today announced the pricing of a public offering of 26,181,818 shares of common stock (the “Common Stock”) and warrants (the “Warrants”) to purchase 26,181,818 shares of Common Stock at an offering price of $0.55 per share and warrant.
Each Warrant is immediately exercisable for one share of Common Stock at an exercise price of US$0.55 per share and will expire five years from issuance. The aggregate gross proceeds of the offering are expected to be approximately US$14.4 million.
To tell a long story short, IT Tech Packaging is looking to transform its existing business model. If investors appreciate the new business idea, they may provide cash to the company. If the management is smart and finds beneficial business models, we will most likely see the share trending higher. Either you buy shares or not, IT Tech Packaging is a company to be followed carefully.
Disclosure: No Position In IT Tech Packaging. We Were Not Paid To Write The Article.