Issue of Equity

RNS Number : 6366B

Cyan Holdings Plc

05 April 2013

 



05 April 2013

Cyan Holdings plc

("Cyan" or the "Company")

Issue of Equity

Cyan Holdings plc (AIM: CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control announces the conditional placing of 223,333,333 new Ordinary Shares of 0.01p each ("Placing Shares") with new and existing institutional shareholders ("Placees") at a price of 0.45p per share to raise  £1 million before expenses (the "Placing"). The Placing is conditional only upon the admission of the shares to AIM.

Background to the Placing

Further to the announcement made on 25 March 2013, the Board has taken the decision to strengthen key relationships in the energy and utility sector in India with further in-country investment.

The Company updates shareholders that whilst the Tamil Nadu Electricity Board ("TNEB") tender attribution process has been delayed, it now appears to be moving towards a conclusion and Cyan's competitive position, through its meter manufacturer partners who have placed bids on the tender, remains excellent. Cyan will continue to provide on the ground technical support to our bidding partners until the tender is awarded. We will provide shareholders with a further update as soon as we have solid news that we are authorised by our local partners to release.

Due to the TNEB tender delay, as well as the emerging scale of the opportunity for Cyan in India, the Board has decided that it is in the best interests of shareholders to raise a limited amount of cash as quickly and as inexpensively as possible to provide further funding both for the continued expansion of the Company's activities in India and to bolster the Company's balance sheet, which will assist in the final negotiations with the meter manufacturer partners.

John Cronin, Executive Chairman of Cyan, commented: "The TNEB contract is clearly taking longer than expected, and whilst it was a difficult decision for the Board to further dilute shareholders, we believe it is in their best interest to provide further capital for the future development of the Company in the region as well as strengthening the balance sheet at this key time during the tender attribution process."

Details of the Placing

At the time of the Company's previous General Meeting, authorities were sought in relation to the non-pre-emptive allotment of Ordinary Shares and the issue of the Placing Shares is covered by these authorities.

In addition to the Placing Shares, it is proposed that Placees will be granted warrants ("Placing Warrants") to subscribe for up to a further 74,444,444 new Ordinary Shares at a price of 0.65p per Ordinary Share within a period of six months from the date of issue of the Placing Warrants. XCAP will be issued with Corporate Finance Warrants in addition to corporate finance fees and commissions charged by them to the Company in connection with their services relating to the Placings. The Corporate Finance Warrants will have similar terms and conditions to the Placing Warrants.

The Placing Warrants and the Corporate Finance Warrants (together the "Warrants") will not be granted unless and until shareholder approval has been obtained in respect of resolutions to be tabled at the Company's Annual General Meeting (to be held before the end of June 2013) authorising the directors of the Company to allot new ordinary shares pursuant to the Warrants, on a non pre-emptive basis.

Application for Admission

Application has been made by the Company for the Placing Shares to be admitted to trading on AIM and it is expected that dealings in the Placing Shares will commence at 8.00 a.m. on 10 April 2013.

Following the admission of the Placing Shares, the Company's total issued share capital will be 2,580,367,569 Ordinary Shares of 0.01p each.  This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.

Enquiries

Cyan Holdings plc John Cronin, Executive Chairman www.cyantechnology.com	Tel: [phone]
Cenkos Securities plc NOMAD and Joint Broker Stephen Keys / Adrian Hargrave	Tel: [phone]
XCAP Securities plc Joint Broker Jon Belliss / Adrian Kirk	Tel: [phone]
Walbrook PR Financial PR Bob Huxford Paul Cornelius	Tel: [phone] [e-mail] [e-mail]

About Cyan

Cyan is an integrated system design company delivering mesh based flexible wireless solutions for utility metering, lighting control & industrial telemetry. For more information, please visit www.cyantechnology.com.

 

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