China Security & Surveillance Technology, a provider of digital surveillance technology in the People's Republic of China, announced it completed its registered direct offering with certain accredited investors for 4.056 million shares of its common stock at a price of US$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. acted as the lead placement agent and sole bookrunner and Imperial Capital 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 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.
Guoshen Tu, CEO of CSST, said, "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."