China Information Technology, Inc. Terminates Share Repurchase Plan; Chairman & CEO Adopts New $2 Million Purchase Plan, Makes Non-Plan Private Purchase of 1.1 Million Shares
SHENZHEN, China, March 15, 2012 /PRNewswire-Asia-FirstCall/ -- China Information Technology, Inc. (Nasdaq: CNIT), a leading provider of information technologies and display technologies based in China, today announced that its Board of Directors has approved the termination of its stock purchase plan. At the same time, the Company's chairman and chief executive officer, Mr. Jiang Huai Lin, entered into a new $2 million purchase plan. Mr. Lin also agreed to purchase 1,084,895 shares in a private transaction outside the purchase plan at a purchase price per share of $1.20.
The Company has approximately 27.0 million shares outstanding, approximately 41.0% of which are currently held by Mr. Lin, not including the pending acquisition of approximately 1.1 million shares as described above.
Mr. Lin commented, "To reemphasize my commitment to the Company and my belief in its potentially strong future, I have decided to continue the increase in my equity holdings in the Company by reinitiating my purchases under our purchase plan and making a separate private purchase. At the same time, the termination of the Company's share repurchase plan will enable it to devote more resources to other priorities such as marketing and research and development."
The purchases under the new purchase plan will be made from time to time on the open market or in privately negotiated transactions at the discretion of Mr. Lin's broker, subject to market conditions and other factors, including black-out periods during which Mr. Lin and others are prohibited from trading in the Company's shares.
While black-out periods typically occur near the end of a fiscal quarter in anticipation of the public release of quarterly earnings, the Company may impose a black-out period at any time without advance public notice. The purchase plan is expected to continue until September 2012 unless extended or shortened by the parties. Mr. Lin intends to effect the share purchase plan in compliance with the conditions of Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.
About China Information Technology, Inc.
China Information Technology, Inc., through its subsidiaries and other consolidated entities, specializes in geographic information systems (GIS), digital public security technology (DPST), and hospital information systems (HIS), as well as high-end digital display products and solutions in China. Headquartered in Shenzhen, China, the Company's integrated solutions include specialized software, hardware, systems integration, and related services to help its customers improve efficiency in information management. To learn more about the Company, please visit its corporate website at http://www.chinacnit.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the amount and timing of any purchases of the Company's common stock by the Company's chairman and chief executive officer; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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SOURCE China Information Technology, Inc.