CyanConnode Holdings plc has successfully completed a placing and subscription of new ordinary shares and investor warrants. The fundraising raised £2.7 million at an issue price of 10 pence per new ordinary share, reflecting a 1% discount to the closing price on November 7, 2023. The placing was oversubscribed. The company will issue a total of 600,300 first placing shares, 2,000,000 EIS subscription shares, 18,588,200 second placing shares, and 6,000,000 remaining subscription shares. Each subscriber will also receive investor warrants, which could result in the issue of a total of 27,188,500 further new ordinary shares if exercised in full.
Certain directors of the company, including John Cronin, Heather Peacock, and David Johns-Powell, participated in the fundraising. Their participation constitutes a related party transaction, but the independent directors consider the terms to be fair and reasonable. Application will be made for the admission of the new ordinary shares to trading on AIM. Settlement and admission of the first placing shares and EIS subscription shares are expected to take place on or before November 14, 2023, while settlement and admission of the second placing shares and remaining subscription shares are expected to take place on or before November 15, 2023.
Following admission, the company will have 299,075,864 ordinary shares in issue. The company holds no ordinary shares in treasury. John Cronin, Executive Chairman of CyanConnode, stated that the company has won orders for a total of 5.3 million Omnimesh modules to date and has a significant order book. The additional working capital raised will support the company's growth and participation in tenders for more than 150 million units.