Savvy Trades and Investments

[CPTMatt]

TIS relevant 8k language

As advised during the third-quarter earnings call, Orchids Paper Products Company (the “Company” or “Orchids”) has been actively engaged in several retailer private-label bid-processes. Now, in an effort to provide additional and useful information to its shareholders, Orchids is announcing that it has been awarded a significant amount of new business in the form of bid awards from new and existing customers (the “Award”), pursuant to which converted-product cases may be ordered via purchase order. Winning bids included both conventional and structured tissue products expected to be produced in Orchid’s new plant in Barnwell, SC as well as the Pryor, OK facility. The Company anticipates that purchase orders under the Award may ultimately represent approximately a 35% increase in the annualized sales volume of converted-product cases, based on customer forecasts and relative to third quarter 2016 actual sales volumes, with full implementation in the third quarter of 2017.



Although there is no guarantee of volume, the common practice in the industry is to award business based on a bid process designated by the customer with clear volume expectations and timing for shipment communicated to the supplier as part of the award process. Orchids’ experience has been that volumes under purchase orders which it receives under winning bids generally approach the volumes identified in the Awards.



The Company expects purchase orders under the Award to be received in the first and second quarters of 2017 with fully implemented volumes shipped in the third quarter of 2017. Orchids has begun to receive purchase orders for late first quarter shipment with subsequent purchase orders expected in the second quarter of 2017. The majority of the awarded business will begin to ship in late second quarter 2017. The Company is currently in the process of art work approval, item set up, and production planning to meet targeted ship dates designated by the customers in order to meet these expectations. Orchids continues to actively participate in additional private-label bids, the results of which are expected to become known late in the first quarter of 2017, and sales, if awarded, to be advanced in the third and fourth quarters of 2017. Orchids anticipates discussing additional new business, if any, during its quarterly investors’ calls.



The information in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.