China Intelligence Information Systems, Inc. (OTCPK:IICN) announced a private placement of 4,880,000 shares at $0.39 per share for gross proceeds of $1,903,200 with new investor Fenghua Fan on March 12, 2012. The transaction will take place in two tranches. The company will raise $951,600 in its first tranche on March 15, 2012 and $951,600 in its second tranche on March 22, 2012. The transaction is expected to close by March 30, 2012. The company will not pay any underwriting discounts or commissions. The securities will be issued pursuant to Regulation D and Regulation S. The transaction can be terminated anytime by the mutual consent of the company and the investor. On completion of the transaction, Fenghua Fan, will hold 6.61% stake of the company.