Business
Proposed Placings
Proposed Placings.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n RNS Number : 9620R Cyan Holdings Plc 01 September 2010 \n \n\nCyan Holdings plc \n(\"Cyan\" or \"the Company\") \n \nProposed Placings \nNotice of General Meeting\n \nCyan Holdings Plc (AIM:CYAN.L), announces details of proposed placings of 257,333,333 ordinary shares at 0.75 pence per ordinary share (\"Placings\") by Cenkos Securities to raise approximately £1.8 million after expenses and a General Meeting (\"GM\"), to be held at 11.00 a.m. on 16 September 2010. It is intended that the net proceeds from the Placings will be used for general working capital requirements and will provide the Company with sufficient resources to execute orders to generate meaningful revenues. First Columbus also acted as placing agent. The Company has also entered into non-binding heads of terms relating to the proposed issue of a convertible loan note totalling £450,000 (the \"Convertible Loan Note\"). A document containing the notice of the GM has been posted to all shareholders in the Company and is available to view on the Company's website at: www.cyantechnology.com.\nBackground to and reasons for the Placings\nCyan has completed the transition from a fabless MCU manufacturer to a system supplier which offers an integrated suite of software and hardware products targeting the utility metering and street lighting sectors. These products can be retrofitted to customers' existing products, thus enabling them to benefit from wireless control, enhanced range and penetration within buildings using Cyan's mesh networking solution. The Company has now reached the stage where its products have been designed into those of its customers, thereby significantly improving the prospects for material orders over the next twelve months. \nThe Directors believe that the growth of Cyan's target markets is driven by a number of factors, including detection and minimisation of fraud and enforcement of payment for utility providers, which can generate financial returns for end customers far in excess of the cost of retrofitting Cyan wireless meter control products. Similarly, the Directors believe that energy and maintenance cost savings realised from individually monitoring, controlling and dimming street lighting can generate significant financial savings far in excess of the cost of retrofitting Cyan wireless lighting control products. T...