Cyan raising £3.2m growth capital
Cambridge UK technology business CyanConnode is raising £3.2 million to underpin a fresh commercialisation push.
The company, which specialises in narrowband radio mesh networks, is raising the cash through a share placing offered through an accelerated bookbuild. Cantor Fitzgerald Europe and Beaufort Securities Limited are joint bookrunners.
The company will make other shares available for subscription directly from certain key shareholders; both the placing and subscription are being made by long term strategic, UK institutional and EIS/VCT investors supporting the company as it continues to secure a market-leading position.
The net proceeds will be used to support the company on its journey to large-scale commercialisation.
Specifically it will fund staffing costs for the delivery of customer projects won in its markets, as well as to secure new orders and maintain CyanConnode's leadership position in key markets.
Some of the money will be used to develop and deliver solutions that are being specifically requested by customers; Cyan will also further upgrade its narrowband mesh network solutions.
CyanConnode also wants to further invest in business development initiatives to capitalise on opportunities in its existing emerging markets and secure orders in additional markets.
The integration of CyanConnode's solution into additional Tier 1 meter manufacturer partners will allow CyanConnode to target larger contracts. The Fundraising is not being underwritten and is conditional on shareholder approval at a general meeting in Cambridge on April 3. The admission of the first EIS shares is anticipated for the following day.