January 8, 2010 (FinancialWire) — China Information Security Technology, Inc., (NASDAQ: CPBY) said it has entered into definitive agreements with certain accredited investors to sell in a registered direct offering an aggregate 3,252,033 shares of its common stock at a price of $6.15 per share for an aggregate proceeds amount of $20 million.

Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the company’s placement agent in connection with the offering.

The offering includes 1.6 million shares of common stock offered by Jiang Huai Lin, the company’s chief executive officer, who will hold 39.1% of the company’s outstanding shares after the closing of the offering.

China Information said it anticipates gross proceeds of approximately $10.16 million. In addition, the company will, at closing, issue to the Investors warrants to purchase 813,008 aggregate shares of common stock at a price of $6.15 per share, exercisable for 45 days as of the date of the initial issuing of the warrants.

China-based China Information Security Technology is an application software developer, systems integrator and Geographic Information Systems solutions provider to the public security and civil-use markets in China.

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