Oct 08, 2009. /Lesprom Network/. Orient Paper, Inc., which controls and operates Hebei Baoding Orient Paper Milling Co., Ltd., said that it has closed a private placement financing to support its future growth. In the transaction, the company issued about 8.3 million pre-reverse split shares of the its common stock for an approximate aggregate purchase price of $5.0 million. No warrants are issued or issuable in the transaction. The company said it plans to use the proceeds to enter into the digital photo paper business through the acquisition of a digital photo paper plant and for other general corporate purposes. As part of the terms of the transaction, the company's Chairman and CEO placed 3 million shares of the company's common stock into an escrow account. Those shares will be returned to the company's management subject to Orient Paper achieving at least 90% of the agreed upon net income targets of $10.0 million in 2009 and $18.0 million in 2010.