SHENZHEN, China, Jan. 31 /Xinhua-PRNewswire/ -- China Security &
Surveillance Technology, Inc. ("China Security," "CSST" or the "Company")
(NYSE: CSR), a leading provider of digital surveillance technology in the PRC,
today announced that Whitehorse Technology Limited, a wholly owned company by
Mr. Tu Guo Shen, Chief Executive Officer issued and sold U.S. $50,000,000 in
aggregate principal amount of Exchangeable Senior Notes due 2012 to a third
party investor not affiliated with CSST. In connection with this transaction,
Whitehorse and Mr. Tu pledged 8,750,000 shares of CSST's common stock that are
directly and indirectly beneficially owned by Whitehorse and Mr. Tu,
respectively, to secure the Notes. Whitehorse may only use the Note proceeds
to (i) buy CSST common stock from CSST in a private transaction, (ii) make a
loan to CSST, the proceeds of which may be used by CSST to fund certain
acquisitions, or (iii) buy stock of CSST in the open market.
The Notes are issued to Mr. Tu and secured by his own holdings of CSST
common stock and the Notes will neither result in any dilution of shares of
common stock held by other CSST stockholders, nor will interest on the Notes,
which is payable by Whitehorse and not CSST, in any way currently affect
CSST's net income. CSST is not a party to any of the Note agreements and did
not make any representations, warranties or covenants in connection with the
Notes.
"I look forward to deploying my personal cash in a way that is beneficial
to CSST. This initiative demonstrates my confidence in the long-term value of
the Company," commented Mr. Tu.
This transaction is described in more detail in the 8K and other
supporting documents filed with the Securities and Exchange Commission.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, China Security manufactures, distributes,
installs and maintains security and surveillance systems throughout China.
China Security has manufacturing facilities in China and a R&D facility which
maintains an exclusive collaboration agreement with Beijing University. China
Security has built a diversified customer base through its extensive sales and
service network 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 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 at http://www.sec.gov .
SOURCE China Security & Surveillance Technology, Inc.