Financialnewsmedia.com News Commentary
PALM BEACH, Florida, Jan. 16, 2020 /PRNewswire/ -- Today's investors are keeping in tune with a growing sector of the Packaging Industry. Recent industry reports predict continued growth in the global vacuum packaging market. MarketsAndMarkets states that the market for vacuum packaging has increased since the last decade because of the technological upgradations and innovations in the packaging industry. The global vacuum packaging market is projected to reach USD $27.67 Billion by 2020, at a CAGR of 4.24% from 2015 to 2020. The vacuum packaging market has been growing in accordance with the packaging industry. With the increase in demand for hygienic, eco-friendly, and economical packaging solutions, the demand for vacuum packaging has increased. New developments such as manufacturing of vacuum packages that possess barrier properties, recyclable packaging, and lightweight packaging are adding value to the vacuum packaging market. Active companies in the markets this week include CTI Industries Corporation (NASDAQ: CTIB), Sealed Air Corporation (NYSE: SEE), Graphic Packaging Holding Company (NYSE: GPK), Amcor plc (NYSE: AMCR), Berry Global Group, Inc. (NYSE: BERY).
With the advent of packaging technologies, product safety and longer shelf-life have become requisites for product manufacturers. This developed an ever-increasing need for packaging techniques to undergo packaging without hampering the quality of packaged products. Vacuum packaging has become an imperative for many industries such as food, pharmaceuticals, industrial goods, and consumer goods, where preservation of a product is paramount.
CTI Industries Corporation (NASDAQ: CTIB) BREAKING NEWS: CTI Industries Announces Successful $2.5M Initial Closing of $5M Strategic Investment - CTI Industries Corporation ("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.
This initial closing is part of a larger Offering of 500,000 shares of the Company's newly created Series A Convertible Preferred Stock, no par value per share ("Series A Preferred"), with each share of Series A Preferred initially convertible into ten shares of the Company's common stock, at a purchase price of $10.00 per share, for aggregate gross proceeds of $5,000,000 (the "Offering"). The gross proceeds from the Offering of $5,000,000 were held in escrow; the first closing resulted in the release of $2,500,000 in cash from the funds held in escrow, with a remaining $2,500,000 still held in escrow, which will be released upon completion of specific events. The Company's management team considers the Offering and strategic partner representative of a shift and plans to utilize the cash influx to continue to steer CTI into a new more focused direction on behalf of their shareholders.
"This is the sort of strong financial partner that CTI determined would be a key element to our future business operations," said Frank Cesario, President and CEO. "With deals such as the Offering with LF International, and the impending sale of our subsidiary in Mexico, we will reduce our debt by nearly $6 million. The second closing with LF International will provide funds for us to further invest in executing our blueprint for a significantly renewed CTI. We look forward to creating value together."
CTI entered into a Loan Agreement with its primary lender on December 14, 2017, and had been operating under a Forbearance Agreement due to certain events of default. The Forbearance was scheduled to terminate on January 10, 2020.
On January 13, 2020, a new Forbearance between CTI and its lender became effective, for a period ending no later than December 31, 2020 and the Company incorporated the proceeds from the first closing of the Offering into an ongoing credit facility, including new loan covenants. CTI expects to proceed shortly with the second closing of the Offering. Learn more about CTIP by clicking here. https://ctiindustries.com/pages/investor-relations
Other recent developments in the markets include:
Sealed Air Corporation (NYSE: SEE announced recently that it will release its fourth quarter and full year 2019 results at approximately 7:00 a.m. (ET) on Tuesday, February 11, 2020 and will host a conference call and webcast at 10:00 a.m. (ET).
Ted Doheny, President and CEO, and Jim Sullivan, SVP & Chief Financial Officer, will conduct the investor conference call. The conference call will be webcast live on the Investors homepage at www.sealedair.com/investors. A replay of the webcast will also be available thereafter. Sealed Air is in business to protect, to solve critical packaging challenges, and to leave our world better than we found it. Our portfolio of leading packaging solutions includes Cryovac® brand food packaging, Sealed Air® brand protective packaging, and Bubble Wrap® brand packaging, which collectively enable a safer, more efficient food supply chain and protect valuable goods shipped around the world.
Graphic Packaging Holding Company (NYSE: GPK) recently announced the publication of its 2018 Sustainability and Social Responsibility Update Report. The mid-cycle update highlights progress made in Graphic Packaging's robust sustainability initiatives and highlights additional stretch goals that the Company has set for itself. As part of the update, key leaders across the organization discussed sustainability practices and the Company's collaborative efforts in reaching its Vision 2025.
"We are pleased with what we have accomplished and are driven to achieve greater strides in our sustainability programs," said President and CEO Michael Doss. "At Graphic Packaging, we are focused on continued improvement and leading in sustainability and social responsibility, with ongoing efforts to reduce the impact of our operations on the environment and give back to the communities in which we live and work."
Amcor plc (NYSE: AMCR) has been recognized four times over at the 2019 Packaging Innovation Awards by Dow for improving sustainability outcomes and enhancing consumer convenience across a diverse range of packaging products. "Winning across our flexible and rigid packaging, for beverage, protein and pet food products, is testament to the expertise of Amcor's global team," said Mr. Michael Zacka, Amcor's Chief Commercial Officer.
Berry Global Group, Inc. (NYSE: BERY) recently announced that it has commercialized and started shipping product from its Reicofil R5 asset in Nanhai, China. With bi-component and high-loft soft capabilities, Berry's is only the third R5 start-up in the world. "The Asia region, and China in particular, has historically set the global standard for high-loft, soft materials for the hygiene market," said Berry's Chairman and CEO Tom Salmon. "Investing in a state-of-the-art Reicofil R5 asset in China allows us to maximize innovation and provide differentiated capabilities, to ultimately enhance performance and comfort for consumers."
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