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China Security & Surveillance Technology, Inc. Announces Closing of Its $25.35 Million Registered Direct Offering

Posted on: Monday, 31 August 2009, 05:00 CDT

SHENZHEN, China, Aug. 31 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("CSST" or the "Company") (NYSE: CSR; Nasdaq Dubai: CSR), a leading provider of digital surveillance technology in the PRC, today announced that it has completed its registered direct offering with certain accredited investors for 4.056 million shares of its common stock at a price of $6.25 per share under its Form S-3 Registration Statement resulting in gross proceeds to the Company of $25.35 million, before deducting placement agent fees and expenses of the offering. In addition, the Company has issued to the investors warrants to purchase up to 1.014 million shares of common stock, subject to adjustment in certain circumstances, at a price of $8.62 per share for a term of one year. Brean Murray, Carret & Co., LLC acted as the lead placement agent and sole bookrunner and Imperial Capital, LLC acted as a co-placement agent on the transaction.

The net proceeds from the offering will be used to restructure the notes issued to Citadel Equity Fund Ltd. in accordance with the Company's previously announced restructuring of its outstanding guaranteed senior unsecured convertible notes. Pending such restructuring, the Company will use the net proceeds from the offering for working capital and general corporate purposes.

Mr. Guoshen Tu, Chief Executive Officer of CSST, commented, "We are very pleased to announce the closing of this registered direct offering. We believe this transaction, together with our announced restructuring of the guaranteed senior unsecured convertible notes, will further strengthen our balance sheet and improve our capital structure. We are encouraged by the strong interest and solid participation by reputable long-term shareholders in our offering. As we continue to execute our strategic growth plan, we aim to deliver strong, sustainable, long-term financial performance, and ultimately to reward our existing and new investors with shareholder value."

About China Security & Surveillance Technology, Inc.

Based in Shenzhen, China, CSST manufactures, distributes, installs and services surveillance and safety products and systems as well as develops surveillance and safety related software in China. Its customers are mainly comprised of commercial and government entities and non-profit organizations. CSST has built a diversified customer base through its extensive sales and service network that includes over 150 branch offices and distribution points throughout China. 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. Such information is based upon expectations of our management 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 based upon premises 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 on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov .

SOURCE China Security & Surveillance Technology, Inc.

Source: PR Newswire

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