Placing and operations update

RNS Number : 8488S

Cyan Holdings Plc

27 May 2009

 



Further Funds to Support Significant Progress in Utility Metering

Cyan Holdings Plc (AIM: CYAN.L), a fabless semiconductor company providing configurable application software and production ready modules based on feature rich, low power, microcontroller (MCU) chips, is delighted to announce significant progress in sales and marketing of its wireless utility metering products. In order to fund the growth of the business and its resulting additional working capital requirements, the Company announces the conditional placing (the 'Placing') of up to 80,000,000 new ordinary shares of 0.2p each (the 'New Shares'). The Placing of the New Shares at 1.5p per share will raise up to £1.2 million before expenses.

Cyan announces that it has received an order and will ship 1,000 gas meter modules for two field trials, the first of which will be installed in China during June. Cyan's customer is a well established meter manufacturer with end customers which have requested and funded the field trials of Cyan's mesh networking wireless meter reading solution. Cyan's design, using a single MCU, performs all the electronic functions of the gas meter, including display, as well as wireless communication that enables all meters in a residential building to be read remotely.  The Directors believe that this end customer intends that all new meter installations will be enabled for remote wireless reading and, on the basis of shipment and installation rates for new meters achieved in prior years, the Directors believe that this single customer represents material annual revenue opportunities for the Company. In addition, the current order includes sufficient units for installation of a second trial for a different end user and the Directors are aware of other end users who are expected to either commission their own field trials or base their purchasing decisions on the results of these two trials. Given the potential of cumulative sales to multiple customers, the Directors remain optimistic of the prospects of the Company. 

Cyan is also pleased to announce that it is in advanced stages of negotiation to form a partnership with a substantially larger global business to become a metering technology supplier to that business. The Directors believe that this partner has the size and resources to engage with the largest utility companies in all geographies including North America and the Company is pleased to report that this partner has already introduced new prospects to Cyan. In addition, this partner has the resources to support Cyan's rapidly growing list of prospective customers,  not only China, but also extending to India as well as the growing Automated Metering activity in Europe.

To ensure that Cyan has the resources to support customer orders and the prospective partnership, the Company is pleased to announce the Placing. As part of the Placing, the Company's Chairman, John Read and CEO, Kenn Lamb, have subscribed for 1,000,000 New Shares and 1,500,000 New Shares respectively. Application for the New Shares, which will rank pari passu with existing Ordinary Shares, has been made and admission of the New Shares to trading on AIM is expected to take place on 1 June 2009 ('Admission'). Following Admission, the Company will have 559,129,314 Ordinary Shares in issue. John Read will be interested in 5,113,636 shares and Kenn Lamb will hold 37,000,000 shares representing 0.91 per cent and 6.62 per cent respectively of the Company's enlarged share capital. 

Kenn Lamb, CEO of Cyan said, 'Since our announcement of significant new orders at the end of March, activity levels have continued to grow. Initial order volumes will be dominated by gas meter products, but we are now seeing our first prospective electricity and water meter customers, as well as continued growth in activity with prospective lighting control customers. I would like to thank shareholders for their continued enthusiasm and support for the Company.'

Cyan Holdings plc

Kenn Lamb, CEO Tel: [phone]

www.cyantechnology.com

Cenkos Securities plc

Stephen Keys/Adrian Hargrave Tel: [phone]

www.cenkos.com

Media enquiries:

Hansard Group

John Bick/Adam Reynolds Tel: [phone] 

Notes to Editors 

Based in Cambridge in the UK, Cyan Holdings plc is a fabless semiconductor company specializing in the development of applications solutions collectively known as 'Cy Solved(TM)' which are built upon the company's low powered, configurable eCOG1k and eCOG1x microcontroller chips. 

Cy-Solved incorporates ready to go solutions, software stacks, applications examples, modular software based on easy to use APIs, evaluation boards and production hardware modules from partners, all pulled together through Cyan's free integrated development environment CyanIDE(TM). Cy-Solved can be incorporated as-is into an application but also supports an ability to be easily customised - either way giving users a head start on the road to market. Currently available Cy-Solved applications include RF-Solved, USB-Solved, Ethernet-Solved and Motor Control-Solved. 

The Company was founded in 2002 and listed on AIM in 2005. Cyan Holdings plc operates through the brand 'Cyan'.

 

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