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Filing Details

Accession Number:
Form Type:
Zero Holdings:
Publication Time:
2011-09-20 12:31:06
Reporting Period:
Filing Date:
Accepted Time:
2011-09-20 12:31:06
SEC Url:
Form 4 Filing
Cik Name Symbol Sector (SIC) IRS No
1358190 Orient Paper Inc. ONP Converted Paper & Paperboard Prods (No Contaners/Boxes) (2670) 204158835
Cik Name Reported Address Insider Title Director Officer Large Shareholder Other
1418214 Zhenyong Liu C/o Orient Paper, Inc.
Science Park, Juli Road
Baoding City,hebei Province F4 072550
Chief Executive Officer Yes Yes Yes No
Reported Non-Derivative Transactions
Sec. Name Acquisiton - Disposition Date Amount Price Remaning Holdings Equity Swap Involved Form Type Code Nature of Ownership Explanation
Common Stock Acquisiton 2009-08-31 1,204,341 $0.83 5,115,852 No 4 J Direct
Common Stock Disposition 2011-06-30 51,011 $0.00 5,064,841 No 4 J Direct
Common Stock Acquisiton 2011-09-19 20,000 $2.81 5,084,841 No 4 P Direct
Equity Swap Involved Form Type Code Nature of Ownership Explanation
No 4 J Direct
No 4 J Direct
No 4 P Direct
  1. On August 31, 2009, Orient Paper, Inc. (the "Company"), the Company's Chief Executive Officer, Zhenyong Liu (the "Reporting Person") and the Company's subsidiary, Hebei Baoding Orient Paper Milling Company Limited ("HBOP") entered into a Debt Assignment and Assumption Agreement (the "Agreement"). Pursuant to the Agreement, the Company agreed to assume $4,000,000 of the total aggregate debt of approximately $6,131,761 (the "Debt") owed by HBOP to the Reporting Person to henceforth be the principal debtor to the Reporting Person for the Debt. On August 31, 2009, the Company repaid the Debt to the Reporting Person by converting the Debt into equity of the Company at $0.83033 per share. Accordingly, the Company issued to the Reporting Person a total of 4,817,362 restricted shares of common stock of the Company. On a post reverse split basis, the number of shares issued pursuant to the Agreement is adjusted to 1,204,341.
  2. On October 7, 2009, the Company entered into a Securities Purchase Agreement with Access America Fund, LP, Renaissance US Growth Investment Trust Plc, RENN Global Entrepreneurs Funds, Inc., Premier RENN Entrepreneurial Fund Limited, Pope Investments II, LLC and Steve Mazur (collectively, the "Investors") to sell to them an aggregate of 2,083,333 reverse-split adjusted shares of common stock, par value $0.001 of the Company ("Common Stock") for an aggregate purchase price of approximately $5,000,000 (the "Financing"). As an inducement for the Investors to enter into the Financing, the Reporting Person placed certain of his shares of Common Stock of the Company (the "Escrow Shares") into escrow for the benefit of the Investors in the event the Company fails to achieve certain financial performance thresholds for the 12-month periods ended December 31, 2009 and December 31, 2010 pursuant to a Make Good Securities Escrow Agreement dated October 7, 2009.
  3. The Company missed its financial performance threshold for 2010 (the "2010 Performance Threshold") and after consultation with the Investors, the parties compromised on the number of Escrow Shares to be delivered from the Principal Shareholder to the Investors as compensation for missing the 2010 Performance Threshold. On June 30, 2011, the Company entered into a Make Good Securities Escrow Supplement Agreement ("Supplement Agreement") with the Reporting Person, the Investors and Sichenzia Ross Friedman Ference LLP as the Escrow Agent, which provides, inter alia, for the delivery to the Investors of 51,011 Escrow Shares as full and final settlement and restitution for the Company's failure to meet the 2010 Performance Threshold. Accordingly, the Reporting Person transferred 51,011 shares of Common Stock to the Investors.
  4. On September 19, 2011, the Reporting Person purchased from the open market a total of 20,000 shares of common stock of the Company at an average price of $2.8116 per share.