31st Jul 2007 07:02
Cyan Holdings Plc31 July 2007 Press release 31 July 2007 Cyan Holdings Plc ("Cyan" or "the Company") Placing of new Ordinary Shares to raise £5.3 million Cyan Holdings Plc (AIM:CYAN.L), the fabless semiconductor company specialisingin the development of low powered, configurable microcontroller chips, ispleased to announce that, subject to shareholder approval, it has raised £5.3 million (before expenses) by way of two share placings ("Placings") of53,300,000 new Ordinary Shares at 10 pence per share. The proceeds of the Placings will be used to provide working capital and enablethe Company to: • pursue the strategy for penetration in the Chinese domestic market, which the Board believes represents a significant opportunity for the Company • develop a new entry-level chip for the Chinese market, utilising the Company's knowledge of this region and their requirements • increase the Company's presence in Europe, building on existing relationships • continue to develop relationships with new partners to fully realise Cyan's potential in the European, Chinese and American markets Kenn Lamb, CEO of Cyan, said: "We are delighted with the support demonstratedby new and existing shareholders and we are excited about building on the newstrategy outlined at the AGM in April 2007. I came on board with an 18 monthstrategy. Having clearly identified the markets most important to ourdevelopment, the funds will enable us to fully execute this new strategy. SinceApril, the Cyan team has achieved several new partnerships and the Placingsallow us to further build on these successes and pursue a number of additionalpartnership opportunities. "We anticipate that early shipments for China will be in the first half of nextyear, and that this will be followed by accelerating sales in the second half ofnext year, which the Board anticipates will include some volume shipments. "There is a massive opportunity to increase market penetration and following aperiod of change for good, we are focusing on increasing the Company's marketpenetration and growth, initially concentrating on the Chinese and Europeanmarkets. We look forward to actioning this strategy and further realising Cyan'spotential." For further information:Cyan Holdings plcKenn Lamb, CEO Tel: +44 (0) 1954 234 400Andrew Lee, Finance Director www.cyantechnology.comCollins Stewart Europe LimitedChris Howard/Oliver Quarmby Tel: +44 (0) 20 7523 8350Corporate Finance www.collins-stewart.com Media enquiries:Abchurch CommunicationsHeather Salmond/ Franziska Boehnke Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Application has been made to the London Stock Exchange for the new ordinaryshares to be issued pursuant to the Placings to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and thatdealings will commence at 8.00 a.m. on 28 August 2007 in respect of 15,800,000new ordinary shares to be issued to VCT and EIS investors and at 8.00 a.m. on 29August 2007 in respect of 37,500,000 new ordinary shares to be issued to Non-VCTand Non-EIS investors. The Placings are conditional, inter alia, upon: (a) the approval, withoutamendment, of the resolutions to be proposed at the EGM to be held on 24 August2007 at 11.00 a.m. at Dechert LLP, 160 Queen Victoria Street, London, EC4V 4QQ;(b) the Placing Agreement becoming unconditional in all respects and not havingbeen terminated; and (c) Admission. The new ordinary shares are to be issued pursuant to the Placings will, whenissued and fully paid, rank pari passu in all respects with the existingordinary shares of Cyan and will be issued subject to the memorandum andarticles of association of Cyan. Notes to Editors The proceeds of the Placings will fund Cyan's working capital requirements andallow the Company to continue to build on its strategy to penetrate the marketswhich it has identified to be integral to Cyan's growth. Since Kenn Lamb'sappointment in April 2007, the strategic review which he carried out as aconsultant prior to his appointment as CEO has been put into action, and hisaggressive and achievable strategy is now being implemented. The Company isactively pursuing new l partnerships in order to strengthen its presence in thethree markets of Europe, China and the United States. The Company's focus is initially on Europe, where it is working with partners todevelop module products that incorporate the Cyan chip with other components,and which can be further modified by end customers using Cyan software tools.The opportunities in the Chinese domestic market are also a continued focus forthe Board. The development of an entry-level chip for this market, inconsultation with Cyan's Hong Kong office will offer enhanced functionality atminimal additional cost, which through extensive research, the Company hasidentified as crucial factors in its customers' decision making. In addition,Cyan anticipates that it will be in a position to market its products in the USin 2008. - Ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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