August 24, 2009 (FinancialWire) — Orchids Paper Products CO. (AMEX: TIS) has priced an underwritten public offering of 750,000 shares of common stock at $18.50 per share. Stephens Inc. is the sole underwriter for the offering.

The company has granted the underwriter a 30-day option to purchase up to 112,500 additional shares at the public offering price to cover over-allotments. The offering is scheduled to close on August 26.

Orchids Paper will see gross proceeds of around $13.9 million, or around $16 million if the underwriter exercises its over-allotment option in full. The company plans to use the net proceeds of the offering for the construction of a warehouse, the purchase and installation of a new converting line, and for general corporate purposes.

Pryor, Oklahoma-based Orchids Paper Products is an integrated manufacturer of tissue paper products serving the private label consumer market.

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