FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “CTI Industries Announces Successful $2.5M Initial Closing of $5M Strategic Investment.”
CTI Industries Corporation (NASDAQ: CTIB) (“CTI” or the “Company”), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, today announced the first closing of a previously announced stock purchase agreement (the “Offering”) on January 13, 2020, for total gross proceeds of $2,500,000. On January 3, 2020, the Company disclosed that it had entered into a stock purchase agreement (“The Purchase Agreement”), with LF International Pte. Ltd., a Singapore private limited company (the “Investor”), for a strategic investment, which the Company expects to resolve the over advance circumstance with its primary lender and provide a confident first step in reconstructing a healthy capital structure.
CTI Industries Corporation is headquartered in Barrington, Illinois, in the Northwest Suburbs of Chicago. For more than 37 years we have engaged in the development, production, distribution and sale of unique, innovative flexible film products for commercial and consumer markets. The company operates in five facilities, including 280,000 square feet of manufacturing, office and warehouse space, in Barrington, Illinois, Guadalajara, Mexico, Rugby, England and Frankfurt, Germany.
U.S. stock indexes touched record highs but ended up ambling into the close Wednesday after President Donald Trump signed the first phase of a trade deal with Chinese Vice Premier Liu He, deescalating an 18-month conflict between the world’s two largest economies. The first phase of the trade agreement includes promises by the Chinese government to increase their purchases of U.S. agricultural, manufacturing, and energy products by more than USD 200 Billion over the next two years. Additionally, changes to Chinese regulation and criminal codes regarding intellectual property theft and counterfeiting were also included. “This is a very important and remarkable occasion. Today, we take a momentous step, one that has never been taken before with China, toward a future with a fair and reciprocal trade as we sign Phase 1 of the historic trade deal between the United States and China,” the President said during the White House press conference.
The first phase of the trade deal has already received its fair share of criticism. According to a report by Politico, critics have warned that the 86-page agreement fails to resolve the enduring U.S. concerns about China’s industrial policy, specifically how to restrain the billions of dollars in government subsidies Beijing grants to its state-owned corporations. “That’s a giant hole in the phase one deal, and there’s no way to get around it,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics. “We’re no closer today to resolving any of those fundamental frictions than we were before the trade war started,” Bown added. Negotiations regarding the second phase of the trade deal are set to begin in the near future, with uncertainties abound on how long it will take for the deal to materialize. But in the meantime, phase one is expected to somewhat stabilize the relationship between two nations as well as provide relief to farmers and manufacturers bearing the impact of the Trump’s tariffs.
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