Top brass commit £1m to CyanConnode £5.6m fundraise
Cambridge UK technology business CyanConnode is bidding to raise £5.6 million growth capital.
Directors John Cronin, Harry Berry, Heather Peacock and David Johns-Powell have already chipped in.
Broker FinnCap notes that senior management and the board have participated to the tune of £1 million and believe the new funds should provide the necessary working capital to reach cashflow breakeven under the current business plan.
The net proceeds 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 raise depends on shareholder approval at a general meeting in Cambridge on November 5. No fireworks are expected.
CyanConnode claims a world lead in narrowband radio frequency (RF) mesh networks that facilitate machine to machine (M2M) communication. Its 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.
During the first six months of 2018, CyanConnode improved its delivery processes which enabled it to achieve record first half revenue of £1,637,008.
The key contributors to the revenue growth were achieved from existing customer contracts in India, the Nordics and the UK. The company has also reduced its cash cost base to approximately £560,000 with effect from January 2019.
• PHOTOGRAPH SHOWS: CyanConnode executive chairman, John Cronin