February 11, 2010 (FinancialWire) — Sinotel Technologies Ltd. (OTC: SNOXY) said it closed an $11.4 million private placement of its ordinary shares on February 1. The company sold 28,000,000 ordinary shares at a price of around $0.4087 per share. UOB Kay Hian Private Ltd. was the placement agent.

The company saw net proceeds of around $10.9 million. Investors included Emirates Tarian Asset Management Pte Ltd., OneEquity SG Pte Ltd. and Asian Trust Investments Pte Ltd.

As a result of the placement, Sinotel Technologies’ issued shares increased to 336 million ordinary shares. The placement price of around $0.4087 for each placement share represents a discount of around 10% of the weighted average price for trades done on the company’s shares on the Singapore Stock Exchange on January 20, 2010 and up to the time of the trading halt of its shares on January 21, 2010.

Sinotel said that around half of the net proceeds will be utilized to fund the purchase of design and testing equipment required in the company’s project work as part of its capital expenditure requirements and around half will be utilized to fund the costs and expenditures of projects undertaken by the company in its ordinary course of business.

Beijing-based Sinotel began operating in 2002 as a handset distributor and has evolved into a wireless telecommunications innovator that provides a range of customized telecommunication applications and solutions.

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