Shenzhen City, China, October 25, 2007: China Public Security Technology, Inc., provider of public security information technology and GIS software services, announced that it has entered into a Securities Purchase Agreement with institutional investors pursuant to which China Public Security agreed to issue and sell up to 5,000,000 shares of common stock at a purchase price of USD 8.00 per share, for gross proceeds of up to USD 40 million. The net proceeds of the offering will be used for the expansion of current business, for potential acquisitions and for working capital. The Company anticipates closing the transaction prior to November 8, 2007.
“We are pleased with the high level of interest in the Company shown in connection with this offering,” remarked Mr. Jiang Huai Lin, CEO of China Public Security. “We expect that this round of financing will enable us to pursue our growth strategy and better position our company to tap the growing market for public security IT solutions in China.”
The common stock issued in the private placement has not been registered under the Securities Act of 1933, as amended, and may not be subsequently offered or sold by the investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. China Public Security has agreed to file a registration statement covering the resale by the investors of the common stock issued in the private placement.
