SHENZHEN, China , July 30 /Xinhua-PRNewswire/ -- China Security &
Surveillance Technology, Inc. ('The Company' & 'CSST')(NYSE: CSR), a leading
provider of digital surveillance technology in the PRC, today announced that
the Company has completed a private placement transaction in which it issued
722,544 units (the "Units") to several United Arab Emirates (UAE) based
investors (the "Investors") for an aggregate gross cash purchase price of
A small number of investors were selected to participate in this private placement, including Mr. Sharafuddin Al Sayed Sharaf , Faisal Holdings and MAC Capital Limited.
Mr. Sharaf is a local U.A.E.-based businessman and co-founder of the Sharaf Group, which was established in 1976 in partnership with his brother, Ibrahim Al Sayed Sharaf . The group has diverse interests in retail fashion, electronics, travel and tourism, shipping and transport, logistics, financial services, leisure, real estate, construction and industry. Mr. Sharaf also is the Chairman of the First Security Group, a significant provider of security and related services in the U.A.E.
Faisal Holdings is a considerable business conglomerate in the U.A.E. Under the Chairmanship of H.H. Sheikh Faisal Bin Sultan Al Qassimi , the company has grown over the last 40 years to be a substantial undertaking, with interests ranging from construction to real estate, retail and financial services. Its primary focus is on industry. A major subsidiary of the group is GIBCA, a large manufacturing and construction operation with its base in the Emirate of Sharjah , U.A.E.
Guoshen Tu, Chairman and Chief Executive Officer, stated, "We view this private placement as a strategic equity partnership and one that can help expand our opportunities in the Middle East region. We are seeing increased demand for security and surveillance services not only in China , but in other surrounding regions, including the Middle East . Both investors involved in this transaction are highly respected, well-known individuals in the UAE who can provide further credibility for CSST and increase the profile of our Company as we pursue new business opportunities within our core operating categories in the Middle East region. In addition to our recent announcement to apply for a secondary listing on the Dubai International Finance Exchange (DIFX), we believe this new equity partnership can enhance our relations with local governments and the UAE business community and provide new sales opportunities for CSST."
Dubai International Financial Centre-based investment bank, MAC Capital Limited, has been appointed by CSST to advise on a listing on the DIFX and also advised on this private placement. The Company has received a waiver from Citadel related to this transaction and there is no reset whatsoever related to the terms of its convertible notes.
"The Gulf Cooperation Council (GCC) is not an easy region to access. Like Asia , good local partners are essential if any company wishes to establish a successful business here. The U.A.E. property markets continue to grow significantly and CSST's "complete solution" to the security issue will be of significant interest to major developers here," added Robert W. McMillen , Chairman of MAC Capital.
Additionally, the Company today announced that it has decided to partially extend the management share lock-up period. Management will only be able to sell one third of their shares which are not subjected to restriction per year starting from 1st January, 2009 . The lock up agreement covers approximately twenty million shares held by key management and other senior managers. It further stipulates that these parties may not pledge, mortgage, sell these shares without formal consent of the Board of Directors through December 31st 2011. Any request for the sale of the shares will need to be made one month in advance to the Board of Directors. In addition, the key management team will have a First Right of Refusal to acquire these shares based upon the prevailing market price. The original share lock-up was set to expire at the end of the 2008 fiscal year.
"This pledge highlights our common business interests and reflects our view that our position as a leading security solution based provider will grow stronger as we execute on our strategy. The management team remains confident about the business outlook and is committed to build a world class organization," concluded Tu.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , China Security manufactures, distributes, installs and maintains security and surveillance systems throughout the PRC. China Security has manufacturing facilities located in China and an R&D facility which maintains an exclusive collaboration agreement with Beijing University and Wuhan University. China Security has built a diversified customer base through its extensive sales and service network that includes numerous points of presence throughout the PRC. To learn more about the Company visit http://www.csst.com .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects" or similar expressions. These forward-looking statements may also include statements about our expected membership in the Russell Indices, which is subject to change. Such information is based upon expectations that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
SOURCE China Security & Surveillance Technology, Inc.