CyanConnode oversubscribed Placing and Subscription raising £5.25 million

CyanConnode

CyanConnode Holdings plc (LON:AIM), a world leader in narrowband radio frequency (RF) smart mesh networks, has announced that, further to its announcement at 5.11 p.m. on 23 January 2023, it has successfully completed a placing of new Ordinary Shares, by way of an accelerated bookbuild, which is now closed, and a subscription of new Ordinary Shares. The Placing was oversubscribed.

The Fundraising raised, in aggregate, £5.25 million (before expenses) through the placing of 30,882,352 new Ordinary Shares at an Issue Price of 17 pence per new Ordinary Share. The Issue Price is equal to the closing market price of 17 pence per existing Ordinary Share on 20 January 2023, being the last business day prior to the announcement of the Fundraising.

Directors’ Dealings

Pursuant to the Fundraising and further to the Company’s announcement on 23 January 2023, John Cronin, Heather Peacock, David Johns-Powell and Peter Tyler, each being a Director of the Company, have now participated a total of £115,000 in the Fundraising as follows:

DirectorRoleManner of participationNo. of existing Shares% of existing Share CapitalNumber of Shares subscribed for in FundraiseNo. of Shares held post-admission% of enlarged Share Capital
John CroninExecutive ChairmanSubscription5,924,7312.46%294,1176,218,8482.29%
Heather PeacockCFO and Company SecretarySubscription951,5990.40%117,6471,069,2460.39%
David Johns-PowellNon-Executive DirectorSubscription16,474,5036.85%147,05816,621,5616.12%
Peter TylerNon-Executive DirectorSubscription2,489,0041.03%117,6472,606,6510.96%

John Cronin, Heather Peacock, David Johns-Powell and Peter Tyler as Directors of the Company, are accordingly classified as related parties under the AIM Rules for Companies and their participation in the Fundraising therefore constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies.

Accordingly, Chris Jones, being the independent director, considers, having consulted with Cenkos Securities Plc, the Company’s Nominated Adviser, that the terms of the Directors’ participation in the Fundraising is fair and reasonable insofar as Shareholders are concerned. 

Admission to trading on AIM

Application will be made to the London Stock Exchange for the admission of the new Ordinary Shares to trading on AIM. Further to the Company’s announcement on 23 January 2023, it is now expected that Admission will become effective and dealings in the new Ordinary Shares will commence at 8.00 a.m. on or around 30 January 2023.

Total voting rights

Following the Admission, the Company will have 271,534,423 Ordinary Shares in issue. The Company holds no Ordinary Shares in Treasury. This figure may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Capitalised terms used but not otherwise defined in this announcement shall have the same meanings ascribed to such terms in the Company’s announcement at 5.11 p.m. on 23 January 2023 unless otherwise specified.

John Cronin, Executive Chairman, CyanConnode, commented:

“We recently announced an order for c. 1 million units, taking orders won this financial year to 2.3 million units. This shows significant growth compared to the previous year where we had won orders for a total of 1.3 million units in all years prior to 31 March 2022. There are currently tenders out in India for more than 100 million units. The funds raised by this placing will allow us to maintain momentum and win some of the large opportunities being presented to us at this time. On behalf of the Board, I would like to thank all shareholders who have participated in this fundraising for their continued support.”

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