Cyan seeks £2m

12/10/2009 Robert Tyerman

Cyan, which designs and supplies low-power microcontroller chips, is raising £1.84m after expenses

Loss-making semiconductor hopeful Cyan Holdings plans to raise £2 million to take it to profitability.

Cambridge-based Cyan, which designs and supplies low-power, ‘richly featured' 16-bit microcontroller chips, is to raise the money at 2.1p through broker Cenkos Securities and expects to retain £1.84 million after expenses. The placing, offered at a 10.7 per cent discount to Cyan’s previous share price, will represent 14.6 per cent of the enlarged capital of the AIM-quoted company, which lost a reduced £1.75 million in the first half year on sales of £42,575.

Steered by chief executive officer Kenn Lamb, Cyan says it has taken the first steps to becoming a major supplier and access point provider to the global automated and smart metering and street lamp control markets. The company speaks of ‘exciting prospects’ for 2010, following a claimed ‘performance breakthrough’ in field trials with ‘an established gas meter manufacturer in China’, and has begun trials with prospective customers in India.

Floated at 22p four years ago, Cyan shares have been mostly lamentable performers, falling to 0.35p at one point during the past year. They have now bounced to 2.35p, valuing the company at £13.1 million.