Cyan Holdings Plc Issue of Equity (6366B)
April 05 2013 - 2:00AM
UK Regulatory
TIDMCYAN
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
GBP1 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 Tel: +44 (0) 1954 234 400
John Cronin, Executive Chairman
www.cyantechnology.com
Cenkos Securities plc Tel: +44 (0)20 7397 8900
NOMAD and Joint Broker
Stephen Keys / Adrian Hargrave
XCAP Securities plc Tel: +44 (0)20 7101 7070
Joint Broker
Jon Belliss / Adrian Kirk
Walbrook PR Tel: +44 (0)20 7933 8780
Financial PR
Bob Huxford bob.huxford@walbrookpr.com
Paul Cornelius paul.cornelius@walbrookir.com
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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