Cyanconnode Share Discussion Threads

[toolsmoker] 14/6/2016 07:52

Institutions took most so won't be much selling I can imagine anything below .20 is a bargain will be a lot higher in a few weeks I think

[timbo003] 14/6/2016 07:41

The director's seem to be participating big time which is very reassuring:

* As part of the fundraise, all the Directors of Cyan are investing alongside certain senior managers and a consultant for a total of £304,500 as part of the Subscription

* Directors and certain senior managers have also agreed that, in the interests of retaining cash within the Company, they will receive all of their net income and bonuses earned during the period from July 2016 to June 2017 as shares issued at the issue price, which will represent an incremental equity investment of £729,904
I requested a few shares in the placing when it was doing the rounds at the end of last week, but I am yet to hear whether I received an allocation.

[white night] 14/6/2016 07:40

As per usual, I take it us long suffering shareholders can't partake at 0.18p.

[spike_1] 14/6/2016 07:35

Yes - well done multi ;0)

So what do you think of the acquisition?

Best wishes - Mike

[multibagger] 14/6/2016 07:26

My post 262 from 28 May 2016.....fairly on the money re acquisition :)

"I am personally thinking that this acquisition and funding RNS may take yet another fortnight or so.

I'm not too keen on CYAN trying to develop the hardware side of things - hardware margins are generally abysmal, equipment gets commoditised, prices keep dropping and there is a forex element that can make margins volatile - let alone the infrastructure and logisitics of supply chain in the developing world. Better leave it to people who are very experienced in that area.

I would think that our best returns on our investment will come from sticking to developing and maintaining an IP / technology edge, developing software and utilisation protocols/interoperability gateways /revenue platforms and identifying new areas where our tech can be adapted / allow other "last mile" tech requirements piggy back onto our chips.

My guess is that is our acquisition is a company that is based abroad - involved in chip design/communication software or a strategically positioned player in an important geogrpahic market. I am not persuaded by the speculation around whether it is Antenova.

Good luck all :)"

[multibagger] 14/6/2016 07:24

This is an abridged version...a lot of detail to take in...


Cyan Holdings plc
("Cyan" or the "Company")



£12.6 million Placing, Subscription and

Acquisition of Connode,

Director Dealings

and

Notice of General Meeting



Highlights



· Acquisition of Connode Holding AB, a well-established supplier of wireless communication solutions for smart metering and the Internet of Things ("IoT") with customers in the UK, Europe and Asia for a consideration of £6.8 million, consisting of £4.3 million in cash and £2.5 million in equity consideration. The £12.6 million transaction value consists of the £10.1 million Placing and Subscription and the £2.5 million equity consideration



· Connode is a key supplier of mesh technology to the UK Smart Metering Implementation Programme. The potential value of the SMIP rollout to Connode is approximately £37 million in software licence and support fees over the rollout and support lifecycle



· Cash consideration will be financed through an equity fund raise of £10.1 million consisting of a Placing of 4,341,777,600 Ordinary Shares ("Placing Shares") and a Subscription of 1,280,277,650 Ordinary Shares ("Subscription Shares") at a price of 0.18 pence per share



· Biggles Enterprises Limited, part of the J. S. Technical Services Company, Limited group of companies ("JST") in Thailand (with whom the Company signed a distribution agreement in May 2016) has agreed to make a strategic investment of £2 million as part of the Subscription



· As part of the fundraise, all the Directors of Cyan are investing alongside certain senior managers and a consultant for a total of £304,500 as part of the Subscription



· Directors and certain senior managers have also agreed that, in the interests of retaining cash within the Company, they will receive all of their net income and bonuses earned during the period from July 2016 to June 2017 as shares issued at the issue price, which will represent an incremental equity investment of £729,904



· Connode offers Cyan a highly complementary product range with further growth opportunities to create the global number one Narrowband Mesh radio solution Internet of Things canopy provider



· Since 2006 utilities and telecom operators have deployed Connode-enabled devices in large-scale projects in Europe. As a result, the acquisition will open up new territories for the Company in Europe and other western markets, including potentially North America



· The Directors believe that Connode represents an attractive opportunity to acquire a business with a complementary product suite in new territories



Cyan Holdings plc (AIM:CYAN), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, is pleased to announce a proposed placing and subscription with institutional and other investors of 5,622,055,250 ordinary shares of 0.01 pence each at a price of 0.18 pence per share raising a total of £10.1 million. The Issue Price represents a discount of 14.3 per cent. to the closing price of 0.21 pence on 13 June 2016 (being the latest practicable date prior to the announcement of the Proposals). The net proceeds of the Placing and Subscription will be used to fund the proposed acquisition of Connode, a Swedish provider of wireless communication solutions and for working capital purposes.



Completion of the Placing, Subscription and the Acquisition are conditional upon, inter alia, passing of the Resolutions by Shareholders at the General Meeting in order to ensure that the Directors have the necessary authorities and powers to allot the Placing Shares and Subscription Shares for cash on a non-pre-emptive basis, and in order to ensure that the Directors have the authority to allot the Consideration Shares in connection with the Acquisition. Notice of the General Meeting is included in the Circular which was posted to Shareholders yesterday. The Circular provides details of, and the background to the Proposals and sets out the reasons why the Board believes that the Proposals are in the best interests of the Company and its Shareholders. If the Resolutions are passed, the Placing Shares, Subscription Shares and Consideration Shares will be allotted after the General Meeting and Admission of the New Ordinary Shares is expected to occur at 08.00 a.m. on 1 July 2016. The Placing and Subscription are not being underwritten.



John Cronin, Executive Chairman of Cyan commented:



"As our clients in developing markets realise the benefits from our proprietary end-to-end solutions, we believe that they will want to converge their networks and this will require standards-based technologies. Convergent networks require a standards-based core language to enable the rapid development integration and consolidation of applications. The acquisition of Connode is transformational for Cyan, and will give us the capability to build these functions into our core products, enabling us to future proof our customer solutions and provide standards-based interfaces for additional connectivity as required for the Internet of Things and smart cities."





Director Dealings



As part of the Subscription (in which Directors, senior management and consultants are subscribing for £304,500 of Ordinary Shares), certain of the Directors' share holdings will increase.



The beneficial and non-beneficial interests of the Directors in Ordinary Shares as at the date of this document and following the Placing and Subscription are set out in the table below.

[scrutable] 10/6/2016 14:47

The company has announced an impressive order and a stream of pilot schemes in a wide variety of countries but there was very low invoicing last year and no mention of how and from where the rollout for Iran etc is already in manufacture and when any deliveries are likely to begin.
Is all the hardware subcontracted? Is there actually something happening?
Are there work-in progress funding problems?
Can anyone encourage or at least and enlighten me?

[moormoney] 10/6/2016 12:22

Beaufort note is very good reading. Huge potential for Cyan which seems almost unnoticed at the moment so great opportunity IMO to build a stake early.

[spike_1] 06/6/2016 10:30

That webcast is very encouraging with regard to India over the early mid-term.
India is a mess, but it is still growing well, and they do seem determined to sort out their power infrastructure.

Yes Cyan is always jam tomorrow - but to be fair, the amount of jam seems to be increasing almost exponentially, and it is difficult to see someone else in India more poised than Cyan (in smart metering) to take advantage of it.

I remain confident. ;0)

Best wishes - Mike

[multibagger] 06/6/2016 08:10

Courtesy of colourbounce on another thread....





Press speculation and leak being investigated !

[cpap man] 06/6/2016 08:05

John Cronin, Executive Chairman of Cyan, commented:



"The last financial year has really demonstrated the value of the investment and momentum that was built in 2014, as our addressable markets continue to grow in terms of global reach and absolute size. We have not only strengthened existing relationships but have established new commercial partners, in new and existing territories. Recent orders further highlighted the scalability of our business model, with the Iran contract being ten times the size of the previous largest order.



"In addition, we continue to develop our name in the industry with the Company winning a number of prestigious awards, including being named winner of the Innovation of the Year Award. This is extremely important in providing the recognition that we feel our products deserve and to increase market demand for our product suite. We look forward to the coming year with confidence and expect to deliver further operational and financial progress."

[multibagger] 06/6/2016 07:44

From RNS today

..."As announced on 24 May 2016, the Board is considering its financing options to raise additional funding to be used for a potential acquisition and for working capital purposes, although the terms of any potential financing are yet to be agreed"

Overall, strong and positive RNS. Massive R&D increase by 70% - wonder if this is for all the PoC or pilots for prospective customers ? I get the feeling that the acquisition is about a month or two off. I liked the strategic outlook (with caveats as expected).

[tightfist] 30/5/2016 12:35

Hi MB,

Interesting to see your thoughts. (Unless the acquisition represents a change in direction) my understanding is that they don't want to be in the hardware business (certainly not meters!, probably not chips in the medium term which I believe are currently sourced from two fabricators in Indian EOU's) and licensing is the stated way ahead. So I want to see the acquisition reinforcing/expediting a licensing distribution model, or broadening their IP and building moats.

We certainly need a big consolidation (1:500?) to gain respectability.

Cheers, tightfist

[multibagger] 28/5/2016 10:09

I am personally thinking that this acquisition and funding RNS may take yet another fortnight or so.

I'm not too keen on CYAN trying to develop the hardware side of things - hardware margins are generally abysmal, equipment gets commoditised, prices keep dropping and there is a forex element that can make margins volatile - let alone the infrastructure and logisitics of supply chain in the developing world. Better leave it to people who are very experienced in that area.

I would think that our best returns on our investment will come from sticking to developing and maintaining an IP / technology edge, developing software and utilisation protocols/interoperability gateways /revenue platforms and identifying new areas where our tech can be adapted / allow other "last mile" tech requirements piggy back onto our chips.

My guess is that is our acquisition is a company that is based abroad - involved in chip design/communication software or a strategically positioned player in an important geogrpahic market. I am not persuaded by the speculation around whether it is Antenova.

Good luck all :)

[lwaxf13] 28/5/2016 07:39

Cyan presenting at another conference!!! What will the story be for potential share holders this time? Surely it can't be "judge our team of industry big hitters on the track record at Cyan." Should be "See how we have driven the share price into the ground with relentless dilution to keep the company afloat. Share holder value? What's that?"

I might get myself into London for the presentation and ask when the strategy will change to put shareholders first. If they are not taking questions in public I could rock up with my question on a placard.

Will there be enough zeros in any computer in the world to record the number of Cyan shares after the £12.5M round of dilution? :-)

On a more serious note I am interested to hear what's in it for shareholders by raising £12.5M. Based on track record will there be anything in it?!!

[multibagger] 28/5/2016 07:10

As the saying goes "coming events cast their shadow before"....the number of jobs being advertised strongly indicates that there is a step change in the prospects and pipeline. It is not surprising that we require a number of staff in India given its size (I read some where that it is as big as Europe) and population. It appears that the current PM is keen on dealing with some fundamental issues (power, sanitation, water) on a mega scale.

With a increasing presence in India and to a lesser degree in China we have a toe hold in markets which account for not far off a third of the world's population. My slight concern is will be able to scale up at the speed that is required to implement all the work that we get ? Will we be able to train up staff of local partners quickly enough ? Is there adequate capacity for the hardware fabrication / supply side of things ? These issues and information from the company in their presentations leads me to believe that we will move sooner to a software supplier model / IP royalty model quicker than we expect. This will allow us to scale up at much greater speed, with the logistics being done by a big local partner with deep pockets such as L&T or Tata in India. So we will be the IP brains in joint ventures with local partners bringing in the financial and implementation muscle.

If we are raising £12.5m at the rumoured price, then we are looking at adding a little under 6b shares. In total in the region of 13b shares ....which does not mean much in itself, as market cap is what matters in the stock market, but nevertheless a turn off and a barrier to more serious interest from financial institutions. Time for consolidation I would think and it may need an EGM to vote on the capital restructuring.

We are at a very exciting and transformational stage for the company...any one attending the Capital Conference in London 0n 16th June where we are presenting ?

[nilli] 27/5/2016 08:19

I suspect the placing should be done by Tuesday the latest. Once the dust has settled I think we should see some recovery.
GLA

[andy] 26/5/2016 20:19

LOL!


I doubt he know me, although I have met him on a couple of occasions.

[cpap man] 26/5/2016 20:05

LOL he quite likes you too Andy!

[andy] 26/5/2016 19:25

cpap man,

Reading what Tom as posted about his exchange with Paul last night, Paul has made himself look silly, and not for the first time late evening.

I like Paul, but he needs to stay away from the keyboard late evenings, IMO.

[cpap man] 26/5/2016 10:25

And rumours about ADVFN....