Cyan raises £5.3m in share placing; targets Chinese market
Cyan Holdings Plc (CYAN.L), the fabless semiconductor company specialising in the development of low powered, configurable microcontroller, said it has raised £5.3m through two placings of 53.3m shares.
The Cambridge-based company said the funds would be used to provide working capital and enable it to:
• pursue its strategy for penetrating the Chinese domestic market, which it believes represents a significant opportunity,
• develop a new entry-level chip for the Chinese market,
• increase its presence in Europe, building on existing relationships
The company’s share price gained 11% to 10.75p on the news. The firm is now valued at around £9.25m
CEO Kenn Lamb (pictured) said: "We are delighted with the support demonstrated by new and existing shareholders and we are excited about building on the new strategy outlined at the AGM in April.
“I came on board with an 18 month strategy. Having clearly identified the markets most important to our development, the funds will enable us to fully execute this new strategy. Since April, the Cyan team has achieved several new partnerships and the Placings allow us to further build on these successes and pursue a number of additional partnership opportunities.
"We anticipate that early shipments for China will be in the first half of next year, and that this will be followed by accelerating sales in the second half of next year, which the Board anticipates will include some volume shipments.
"There is a massive opportunity to increase market penetration and following a period of change for good, we are focusing on increasing the Company's market penetration and growth, initially concentrating on the Chinese and European markets. We look forward to actioning this strategy and further realising Cyan's potential."
31st July 2007
