CyanConnode (AIM:CYAN.L), a world leader in narrowband radio frequency (RF) mesh networks, is pleased to announce that it is proposing to raise £5.1 million (before the deduction of fees and expenses) through the issue of 39,787,391 Placing Shares and 10,665,000 Subscription Shares at 10 pence per Ordinary Share.
In addition, the Company is proposing to raise up to a further £0.5 million (before the deduction of fees and expenses) through an Open Offer and the issue of up to 5,142,961 Open Offer Shares at 10 pence per Ordinary Share. The Fundraising Shares will rank, pari passu, in all other respects with the Company's Existing Ordinary Shares. John Cronin, Harry Berry, Heather Peacock and David Johns-Powell, directors of the Company, have participated in the Fundraising.
Key Highlights
· Proposed Fundraising to raise up to £5.6 million through the issue of up to 55,595,352 Fundraising Shares to new and existing institutional and other investors at 10 pence per Share;
· The Issue Price represents a discount of 18.4 per cent. to the closing price on 18 October 2018, being the last trading date prior to announcement of the proposed Fundraising;
· The net proceeds of the Fundraising will be used to fund future growth to include investment in research and development and working capital to execute on the Company's order book, pipeline and growth plan;
· The Fundraising is conditional, inter alia, upon Shareholder approval at the General Meeting of the Company which is expected to be held at Merlin Place, Milton Road, Cambridge, CB4 0DP at 2.00 p.m. on 5 November 2018;
· £1 million Board and senior management participation in the Fundraising; and
· Appointment of Arden Partners plc as joint broker
Further information explaining why the Board considers the Fundraising to be in the best interests of the Company and its Shareholders as a whole and why the Directors unanimously recommend that Shareholders vote in favour of the resolutions to be proposed at the General Meeting is set out in the full announcement.
Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as defined in the Circular containing notice of the General Meeting.
Read the full announcement
About CyanConnode
CyanConnode is a world leader in narrowband radio frequency (RF) mesh networks that facilitate machine to machine (M2M) communication. CyanConnode's innovative technology uses the industrial, scientific, and medical radio band, (ISM), which is optimised to give exceptional performance and competitive total cost of ownership. Through global partnerships, CyanConnode provides customers with a solution for the rapid deployment of local or countrywide ISM RF mesh networks that provide reliable and secure M2M communication.
For more information, please visit www.cyanconnode.com
Cautionary note regarding forward-looking statements
This document contains statements about the Company that are of may be deemed to be "forward-looking statements".
All statements, other than statements of historical facts, included in this document may be forward-looking statements. Without limitation, any statements preceded or followed by, or that include, the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "should", "anticipates", "estimates", "projects", or words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements may include, without limitation, statements relating to future capital expenditures, expenses, revenues, earnings, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects, etc.
These forward-looking statements are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual result, performance or achievements of any such person, or industry, to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of such persons and the environment in which each will operate in the future. Investors should not place undue reliance on such forward-looking statements and, save as is required by law or regulation (including to meet the requirements of the AIM Rules, the City Code, the Prospectus Rules and/or FSMA), the Company does not undertake any obligation to update publicly or revise any forward-looking statements (including to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based). All subsequent oral or written forward-looking statements attributed to the Company or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements contained in this document are based on information available to the Directors at the date of this document, unless some other time is specified in relation to them, and the posting or receipt of this document shall not give rise to any implication that there has been no change in the facts set forth herein since such date.