REG - CyanConnode Holdings - Axia Investments Provides £5 Million Growth Loan

Cyanconnode HoldingsAnnouncement

19/03/2025 07:15

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RNS Number : 1996B  CyanConnode Holdings PLC  19 March 2025

19 March 2025

 

CyanConnode Holdings plc

("CyanConnode" or the "Company")

 

Axia Investments Provides £5 Million Growth Loan

 

CyanConnode Holdings PLC (AIM: CYAN), a global leader in narrowband Radio
Frequency ("RF") smart mesh networks, is pleased to announce that its
substantial shareholder Axia Investments Limited ("Axia Investments") is
providing the Company with a £5 million unsecured loan to support near-term
opportunities to grow the business.

 

Strategic Rationale and Growth Acceleration

The Company's Indian subsidiary, DigiSmart Networks Private Limited
("DigiSmart"), qualified last year as an Advance Metering Infrastructure
Service Provider ("AMISP"), positioning CyanConnode to bid directly for
large-scale smart metering tenders in India.

 

AMISP tenders require bidders to demonstrate access to upfront capital, and
the funding from Axia Investments ensures that DigiSmart is well-prepared to
participate in and secure these high-value contracts.

 

The loan, which the Company intends to draw down in full, is primarily in
place to support current AMISP bids nearing completion, as well as to provide
working capital.

 

Axia Investments Ltd, a family office fund advised by Doxa Partners LLP
commented:

"We are pleased to be able to support CyanConnode.  We understand the
importance of ensuring it has the capital to execute on the market
opportunities before it. The Company's track record in India is impressive and
the market opportunity is significant."

 

John Cronin, Executive Chairman of CyanConnode, commented:

"The Indian smart metering market continues to gain momentum, and we are
seeing a high level of activity. It's a pleasure to work with Axia, our major
shareholder, who not only closely monitors the market but also has a deep
understanding of our business and the opportunities ahead. The new capital
will enable us to bid for, and hopefully win, near-term AMISP tenders while
maintaining a strong balance sheet."

 

Long-Term Financing and Growth Strategy

In addition to securing this loan, the Company is actively assessing a range
of long-term financing options to support its accelerating growth and ensure
CyanConnode maintains the financial flexibility to capitalise on increasing
demand for its smart metering solutions while driving continued expansion.

 

 

Key Loan Terms

 ·           Amount: £5 million
 ·           Term: Three months, with an option to extend for a further three months under
             certain circumstances at the Company's discretion.
 ·           Interest Rate: pro-rata 15% per annum, payable in cash at the time of
             repayment. Interest rate for the three-month term of the loan will therefore
             be 3.75% of the principal.
 ·           Security: Unsecured.
 ·           Arrangement Fee: None
 ·           Board Appointment Right: while the loan is outstanding or Axia's shareholding
             exceeds 13.8%, Axia shall have the right to convert their current Board
             observer position to a Board member position, subject to completion of
             satisfactory due diligence.

 

Related Party Transaction

Axia Investments Limited, by virtue of it holding more than 10 per cent. of
the existing issued share capital of the Company, is classified as a related
party under the AIM Rules for Companies and the Loan constitutes a related
party transaction pursuant to Rule 13 of the AIM Rules for Companies.

 

Accordingly, the Directors of the Company, all being independent Directors for
the purpose of the above related party transaction, consider, having consulted
with the Company's nominated adviser, Strand Hanson, that the terms of the
Loan are fair and reasonable insofar as the Company's shareholders are
concerned.

 

- Ends -

Enquiries:

CyanConnode Holdings plc
                                  Tel: +44 (0) 1223 865 750

John Cronin, Executive Chairman
                              www.cyanconnode.com

Strand Hanson Limited (Nominated and Financial Adviser)
 Tel: +44 (0) 20 7409 3494

James Harris, Richard Johnson, David
Asquith
 

 

Zeus Capital Limited (Joint
Broker)                                                         Tel:
+44 (0) 20 3829 5000

Simon Johnson, Louisa Waddell

 

Panmure Liberum (Joint
Broker)
Tel: +44 (0) 20 7886 2500

Rupert Dearden / James Sinclair-Ford

 

Novella (Financial PR)
 
Tel: +44 (0) 20 3151 7008

Tim Robertson / Safia Colebrook

 

About CyanConnode

CyanConnode (AIM:CYAN.L), is a world leader in Narrowband Radio Frequency (RF)
Smart Mesh Networks, which are used for machine to machine (M2M)
communication.  As well as being self-forming and self-healing, CyanConnode's
RF Smart Mesh Networks are designed for rapid deployment, whilst giving
exceptional performance and competitive total cost of ownership.

 

In June 2018, CyanConnode launched its award-winning Omnimesh Advanced
Metering Infrastructure (AMI) platform, which has already gained considerable
commercial traction, especially in India which is a key market for the
Company.

 

Through a Global partner eco-system, which is vendor agnostic, CyanConnode has
several routes to market, therefore it is well positioned to capitalise upon
increasing Global demand for smart metering solutions.

 

For more information, please visit www.cyanconnode.com
(http://www.cyanconnode.com/)

 

The information contained within this announcement is deemed to constitute
inside information for the purposes of Article 7 of EU Regulation 596/2014
(Market Abuse Regulations) which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018. Upon publication of this announcement, this
inside information is now considered to be in the public domain.

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