SHENZHEN, China, April 29 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("CSST" or the "Company") (NYSE: CSR; Nasdaq Dubai: CSR), a leading integrated security and surveillance solution provider in the P.R.C., today reported an update on the personal loan redemption of Mr. Guoshen Tu, Chairman and Chief Executive Officer of CSST.
On April 28, 2010, Whitehorse Technology Limited ("Whitehorse"), a business entity wholly owned by Mr. Tu, entered into a Notes Repurchase and Warrant Purchase Agreement ("Repurchase Agreement") for the redemption of US$50,000,000 in aggregate principal amount of its Exchangeable Senior Secured Notes ("Notes") which will be due in 2012, issued under an indenture dated January 11, 2008.
The Repurchase Agreement provides, among other things, that Whitehorse will:
-- Pay US$30,000,000 to the DB Trustees (Hong Kong) Limited ("Trustee") on
or prior to May 5, 2010 in exchange of partial redemption of the Notes,
upon which the Trustee will be instructed by the existing holders of
the Notes to return 8,800,000 million pledged shares
-- Pay the remaining US$20,000,000 to the Trustee and issue and deliver
Warrants purchasing up to 4,400,000 shares of CSST's Common Stocks
owned by Whitehorse to the existing holders of the Notes on or prior to
June 15, 2010, for the cancellation of the remaining outstanding Notes
and the return of the remaining 6,708,085 pledged shares. The Warrants
are exercisable after one year of the issuance with an exercise price
of US$10 per Company share. Whitehorse has a right to redeem the
Warrants in its entirety on or before September 30, 2010.
Mr. Tu commented, "The arrangement demonstrates my commitment to the shareholders and the Company. With our continued market leadership, our mission to provide total security solutions in China remains unchanged. The management team together with all of our dedicated CSST employees will continue to lead the Company to capitalize on the growth opportunities in the security & surveillance industry."
CSST was not a party to any of the Repurchase Agreement or any related agreements and did not make any representations, warranties or covenants in connection with the Notes, Repurchase Agreement, other related transaction documents, or Whitehorse's performance of its obligations thereunder. A copy of the Repurchase Agreement was filed as an exhibit to Whitehorse's Schedule 13D/A which was filed with the Securities and Exchange Commission on April 29, 2010.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, CSST designs, manufactures, sells, installs, services and monitors electronic surveillance and safety products and solutions, including related software, in China. Its customers are mainly comprised of government, commercial, industrial and education entities. CSST has built a diversified customer base through its extensive sales and service network that includes 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. Such statements include, among others, those concerning the Repurchase Agreement, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. 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.
For more information, please contact:
Company Contact:
Terence Yap, Chief Financial Officer and Vice Chairman
China Security & Surveillance Technology, Inc.
Tel: +86-755-8351-5634
Email: ir@csst.com
Investor and Media Contact:
Patrick Yu, Fleishman-Hillard Hong Kong
Tel: +852-2530-2577
Email: patrick.yu@fleishman.com
