Business
Placing and operations update
Placing and operations update.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n RNS Number : 8488S Cyan Holdings Plc 27 May 2009 \n \nFurther Funds to Support Significant Progress in Utility Metering\n\nCyan 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.\n\nCyan 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. \n\nCyan is also pleased to announce th...