Cyanconnode Share Discussion Threads

[sabre6] 23/6/2016 17:05

hvs1
Are you a mutation from MTW

[bilbosenior] 22/6/2016 12:32

Everyone to their own....but I will suggest that a marked difference in general trading of Cyan stock will be apparent following the AGM and more so, on 01.07.16.

[bilbosenior] 22/6/2016 12:32

Everyone to their own....but I will suggest that a marked difference in general trading of Cyan stock will be apparent following the AGM and more so, on 01.07.16.

[hvs1] 22/6/2016 07:29

oh dear, another aim dog jam tomorrow/never share with a bulletin board full of deluded believers

keep the faith muppets, you'll need it by the spade load, lol

[multibagger] 22/6/2016 07:17

Most welcome Mike :)

[spike_1] 21/6/2016 09:55

Timbo and multi: my thanks also for the feedback - much appreciated.
Best wishes - Mike

[lwaxf13] 21/6/2016 07:37

Imo That's a strange way to invest. Holding a stock whilst it tanks from massive percentage gains ( this ran up to 0.6p less than 2 years ago) Especially as this thing has a propensity to drop and dilute. Rinse, repeat.

[krowelet] 18/6/2016 19:43

Thanks again multibagger also timbo003 for the feedback, there is no doubting the commitment of the whole team here, I don't remember any of them selling a single share in all these years.

[multibagger] 18/6/2016 15:06

Cheers Krowelet, you are most welcome :)

[krowelet] 18/6/2016 10:26

Many thanks for the feedback multibagger,JC and his team really do seem to be going for it. I fully agree with the size of his investment re my post 289 14 June, average price of share will be 0.20p circa £792K invested no. of shares will be north of 386,000,000 all my opinion, starting point was the rns of July 15.
SS is of course also heavily invested.

[multibagger] 17/6/2016 18:17

I attended the Proactive Conference yesterday in London and I spoke to John Cronin in the break and these were some of the queries he answered. It was a noisy environment so apologies if I misheard or misunderstood what he was saying. He said that the last 6 months has been the busiest of his life….I got the impression that the company was negotiating on some many fronts…I hope we are not spreading ourselves too thin. I think that the news flow could reflect the activity. He stated at the presentation that he has effectively has put in (including the current year pay and bonus) about £800k in CYAN. He was keen to emphasise that his interests and that of the Directors was aligned with the investors.

1. Re consolidation of shares – the company have been advised not to go for this in the short term to ensure that the private retail investor is not disadvantaged. I pointed out that our share price is effectively stopping Funds from holding, due to their investment thresholds. So nothing on the cards in the short term it appears.

2. Re royalty model – he is hoping that we may be able to get $1-2 per chip/smart meter and about $15-20 per DCU but acknowledged that volumes could put pressure on this given we are talking millions of meters.

3. Re hardware manufacturing and installation logistics – this appears to be in hand and he seemed confident that through our local partners like L&T this can be ramped up. Also installation bottlenecks in terms of trained manpower does not appear to be an issue.

4. I asked as to a progressive dividend policy when we do get to profitability, and he seemed to strongly suggest that would be the case.

5. I asked him whether our tech would solve the “last mile” issue for IoT and he described that our offer as a “canopy” – if there was a sensor, it could be embedded into our chip and used the example of traffic sensors, waste management and various other sensors, though I cannot remember all the various examples he mentioned. He said that he should have talked about it in the presentation – so next time he may do.

6. Someone asked as to how we would get paid by Iran given some of the sanction issues and it appears that our payments will come through India.

7. He repeatedly stated that the company had spent a lot on lawyers and legal advice both with regards to Iran and the recent acquisition.

Overall, he came across as engaged and enthusiastic about our prospects (something would be seriously wrong if otherwise) and that we had many many irons in the fire.

Good luck all :)

[johnwall] 17/6/2016 16:12

timbo003 - thanks for the feedback. Look forward to seeing you at the AGM.

[lwaxf13] 17/6/2016 07:55

I imagine that chunk of change will keep the payroll running a while longer. Phew, jobs secured for the foreseeable. Was there any mention of shareholder value?

[rambutan2] 17/6/2016 01:25

JC's story checks out - the seller...

[timbo003] 17/6/2016 00:07

>>dwall

I must have just missed your message regarding questions to ask at the conference, unfortunately I felt obliged to put my phone away somewhat earlier than I intended as I was sat in the front row next to Ali (a fellow ADVFN investor) who had just been chastised by our host (Sarah) after his phone went off, so apologies for that.


John Cronin (JC) gave the presentation on behalf of Cyan and as expected he mainly focused on Cyan’s recently announced acquisition. There was a brief Q&A session following the presentation, so I took the opportunity to ask a few questions regarding the EIS portion of the funding.


JC confirmed that part of the fund raising was indeed EIS qualifying and stated that Cyan had received written pre-approval from HMRC, he went on to say that the funding has been arranged so the £2.6M EIS portion of the fund raising will go towards working (development) capital requirements and the non-EIS portion will go towards the acquisition. As a double check and to avoid any residual doubt in my mind I then asked whether any VCTs had participated in this round of funding. JC confirmed there had been VCT subscriptions but he was not able to disclose details at this stage, he added that VCT investor information will become available when the shares are issued at the beginning of July. That was good enough for me, under the new rules it is inconceivable that a VCT would invest unless they were absolutely certain that the investment would be EIS/VCT qualifying and would stand up to any amount of scrutiny, as the potential consequence of unintentionally investing in a non-qualifying company (under the new rules) is loss of VCT status.


Since returning from the meeting I have had another look at the RNS regarding the previous funding round in March

It looks as if Cyan would have had £3.45M headroom for EIS funds in this round (based on the £5M annual limit). They state in the RNS for the current fund raising that £3.6M will be used as development capital, so perhaps the reason they only raised £2.6M under VCT/EIS was that there was only demand for this amount?


I also asked why the current owners of Connode were selling out at what looks like quite a cheap price (from Cyan's perspective). JC commented that it was a good question and went on to explain that the principle shareholder was a fund that was currently in run off and Connode were the last remaining investment in their portfolio.


After the meeting I had a very brief opportunity to chat with Simon Smith (CFO) and had just enough time to have a quick moan about the lack of an open offer to accompany the placing, I intend to take that up with him again at the AGM later this month.


Finally, I was informed that slide sets and videos from the conference should be available within a couple of days, so I will post details if and when they appear.

[montjuic] 16/6/2016 10:34

dwall,

This does make me feel uneasy, a lot of this brings Trevillian & his antics to mind & I have to wonder as a longsuffering p.i. (pre- listing) where our interests come in the scheme of things as opposed to those of directors and employees who have lived off investors backs for all these years!!
Trevillions Director remuneration was concocted around company turnover, bonuses and short term share price both of which were manipulated along with bogus sales figures, shareholders lost everything and management walked away with millions.....I hope this isn't going the same way as I have invested more than I should in this share on some of the "news" over the years.

[dwall] 16/6/2016 09:48

Hi timbo

I would be keen to know answers to the following please :-

1. How does the recent acquisition affect the previous strategy of the BOD to build the company to certain size and then sell it? Are they now proposing to grow it further than originally anticipated?

2. I dont really understand why they have now gone for an entrance into the uk market when that was never previously on the cards, in fact it was actually scourned upon from conversations i had. What i am really wondering is if the standardised technology they have now acquired from Connode is actaully the "enabler" required to get them the larger orders and indeed the framework agreement from Tata required for India?

I was specifically told that only the working capital part of the placing is elligible for EIS when i was asked to participate.

Good luck.

TIA

[timbo003] 16/6/2016 09:08

Cyan are presenting at the Proactive investors meeting today (they are on at 11.00)



I'll be happy to ask any specific investor questions (if anyone has any) and report back here after the meeting. I will be asking how confident are the company that they will get EIS approval for the fund raising given that 40% of the funds raised will be going towards an acquisition and under the new rules introduced in November acquisitions are not permitted for EIS/VCT qualifying funds.