VisionChina Media Announces Private Placement To Raise Approx. $9.8 Mln

(RTTNews) - VisionChina Media Inc. (VISN) announced it has entered into a definitive share purchase agreement to raise approximately $9.8 million in a private placement of common shares of the company, par value $0.0001 per share. China Special Situations Holdings (BVI) Limited will purchase newly issued common shares of the company for total consideration of approximately US$9.8 million, at a purchase price of $12.90 per American depositary share.

Upon closing, the investor will hold approximately 13.0% of the company's issued and outstanding share capital and will become one of the company's largest shareholders. The investor will have the right to appoint one director to the board of VisionChina Media after the transaction.

VisionChina Media will receive 20% of the total proceeds in cash and a promissory note for the remaining 80%. The company plans to use the proceeds to fund its working capital and out-of-home interactive media growth initiatives.