China TransInfo Technology Corp. (OTCBB: CTFO) rises on capital infusion

China TransInfo Technology Corp. (OTCBB: CTFO) announced on Friday, July 18, 2008, that it had signed a deal for a private capital placement of $15 million. The provider of public transportation information systems, sold 2.59 million shares to SAIF Partners III L.P. at a price of $5.80 per share. However, the securities issued are unregistered, and thus may not be sold publicly in the United States markets. However, this does not rule out the possibility of a private resale or later securities registration.

China TransInfo has stated that they will use the funding for general capital purposes, acquisitions or expansion. The company has only recently begun generating revenues. Although their business seems to be going successfully, the new capital infusion will surely speed things up and allow the company to take a larger market share quickly.

Shudong Xia, the CEO of China TransInfo commented on the transaction: "We are very pleased to have SAIF take part in the rapid development of China TransInfo. We believe that the proceeds from the private placement will provide us with sufficient capital to expand our taxi media business across China and realize potential strategic acquisitions. As a leading traffic information processor, traffic volume surveyor, and real-time traffic information provider in China, we remain dedicated to maximizing value to shareholders and the investment community."



Seems the company has rather ambitious plans and now they will have money to begin realizing these plans. The stock should be rocketing up, if the company continues to be as successful as now.

Although usually traded on rather poor volume China TransInfo's stock picked up some volume after the announcement and ended up gaining 6% over the Friday trading session.

About the company: