Narrowband radio frequency communications networks developer CyanConnode (LON: CYAN) is raising £2.5m at 10p/share with a warrant attached to subscribe for a share at 15p each. The share price is 10.5p.
At the beginning of the year £5m was raised at 17p/share, which was equal to the closing price on the day. The share price has fallen back after peaking at 24p on 1 February. Net debt was expected to be £3.3m at the end of March 2024. A loss is forecast for 2023-24 before a move into profit in 2024-25.
The latest cash raised will finance engineering resources and make advanced purchases of inventory to take advantage of better prices. Management also talks about satisfying bank guarantees and letters of credit.
Interim revenues jumped from £1.35m to £5.8m, helped by a 25% market share in the smart meter market in India. There was £1m in the bank at the end of September 2023. New contract wins mean that additional working capital is required. The order book totals 5.3 million unit. There were 500,000 units shipped in the first half.
