Business
Placing
Placing.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n RNS Number : 2923B Cyan Holdings Plc 14 August 2008 \nCyan Holdings Plc \n('Cyan' or 'the Company') \n\nPlacing of new Ordinary Shares to raise £3.0 million \n \nCyan Holdings Plc (AIM:CYAN.L), announces details of proposed placings ('Placings') by Cenkos Securities plc to raise approximately £3.0 million (before expenses) and a General Meeting ('GM'), to be held on 3 September 2008. It is intended that the net proceeds from the Placings will be used for general working capital requirements and will provide the Company with the resources to execute its strategy and to take it through to profitability. A document containing the Notice of the GM is being posted to all shareholders in the Company today.\n \nBackground to and reasons for the Placings\n\nCyan is a fabless semiconductor company focussing on the design, sale and support of a range of low power, richly featured 16-bit general-purpose microcontroller chips.\n\nThe Company was admitted to trading on AIM in December 2005. During 2007, the Company changed its management team and focused on a new strategy for distributing its products and reducing its manufacturing costs. Commencing in July 2007, the first six months of an 18 month plan saw the Company undertake a radical restructuring of the business. As well as successfully establishing relationships with distributors in Asia, the USA and Europe to help increase sales penetration, the Company concentrated on the recruitment of an experienced operations team, the development of a low cost entry level device for Asia, the creation of a new suite of products, expansion of the marketing team and significant investment in software development.\n\nThe second six months to 30 June 2008 saw the launch of new module products, initial orders and engagement with customers who have potential for initial volume orders in the second half of 2008. \n\nManufacturing cost reductions on the eCOG1X family have resulted in significant improvements to the competitiveness of the Company's product range, including its new entry level device. All significant development work for this second phase has been completed successfully and the Company now has products and customer engage...