Cyan Holdings, an integrated system and software design company, has made two placings, as a result of which just over 602m shares will be issued at 0.35p each.
The placing will raise £2.1m before expenses, which will be used for general working capital requirements, business development and other product development work as set out below.
In addition, those people with whom shares have been placed have been granted warrants to subscribe for up to a further 301,365,000 ordinary shares at 0.5p per ordinary share within twelve months of admission.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm said that without the placing it would not have sufficient funds to take advantage of current opportunities, but said it "remains in an outstanding position to secure substantial revenues from a very large market and, to a large extent, the placings represent the cost to the company of securing that position".
Cyan added: "It is therefore essential to our growth strategy that the company approaches this crucial phase in its life in the strongest position possible."
The share price fell 17% to 0.39p by 11:01
NR
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
