REG - CyanConnode Holdings - US$7.5 million Convertible Loan Note

Cyanconnode HoldingsAnnouncement

20/05/2025 07:00

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RNS Number : 3745J  CyanConnode Holdings PLC  20 May 2025

 

20 May 2025

 

CyanConnode Holdings plc

("CyanConnode" or the "Company")

 

US$7.5 Million Unsecured Convertible Loan Note

 

CyanConnode Holdings plc (AIM: CYAN), a global provider of IoT communication
and smart metering solutions, is pleased to announce that it has entered into
a US$7.5 million unsecured convertible loan note agreement (the "Loan Note")
with a Middle Eastern climate company, Smart Sustainability Solutions Limited
(the "Lender"), which is a wholly-owned subsidiary of a publicly owned, Abu
Dhabi based global investment company.

 

The US$7.5 million will be used to fund the Company's working capital and
capital expenditure requirements and to repay the short-term loan announced on
19 March 2025.

 

Key Loan Note Terms

 

 ·           Unsecured loan amount: US$7.5 million
 ·           Coupon: 7% per annum, payable on redemption or at the time of conversion
 ·           Term: 60 months from the date of issuance
 ·           Redemption: The Company may redeem the Loan Note in full at any time between
             36 and 60 months from the date of issuance
 ·           Conversion: If the Loan Note has not been redeemed during its Term, the
             principal, together with any accrued but unpaid interest, may be converted
             after the 60-month maturity date into equity in CyanConnode or one or more of
             its subsidiaries, associates, or group companies. Conversion is at the
             election of the Lender but subject to mutual agreement with the Company
             regarding the conversion price and the entity or entities into which it may
             convert. Any conversion into CyanConnode equity shall not result in a breach
             of Rule 9 of the UK Takeover Code
 ·           Conversion Price: To be determined based on fair market value, subject to
             agreement between the Company and the Lender

In addition, the Company is in discussions with various potential funders
regarding project funding for specific projects, both won by and to be awarded
to its Indian subsidiary, DigiSmart Networks Private Limited ("DigiSmart").
Any such infrastructure project funding would be structured on a project level
and remain separate from CyanConnode.

 

DigiSmart was empanelled in 2024 as an Advanced Metering Infrastructure
Service Provider ("AMISP"), enabling it to bid directly on smart metering
tenders under India's Revamped Distribution Sector Scheme (RDSS). Currently,
110.4 million smart meters - worth an estimated US$10.2 billion - remain to be
awarded to AMISPs across India.

 

DigiSmart is initially targeting approximately 10 million of these meters,
representing a solid commercial pipeline that will require infrastructure-type
project funding into CyanConnode's Indian subsidiaries. In addition, a further
76.1 million meters remain available for allocation to OEM subcontractors
under the RDSS programme - a pool from which CyanConnode Private Limited, the
Company's Indian subsidiary, is exceptionally well placed to benefit given its
proven technology and established market presence.

 

This loan funding from the Lender is expected to strengthen CyanConnode's
ability to pursue major opportunities in India and expand into other
high-growth markets.

 

John Cronin, Group CEO of CyanConnode, commented:

"We are thrilled to have finalised this loan note agreement, which follows our
announcement last week regarding the Letter of Award to DigiSmart for
approximately £70 million, for smart meters to be deployed in Goa. Securing
this loan on favourable terms helps the Company to capitalise on growing
demand for its smart metering solutions."

 

- Ends -

 

Enquiries:

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

John Cronin, Group
CEO
 
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 global provider of IoT communication and smart
metering solutions. Its comprehensive technology portfolio includes narrowband
RF mesh, advanced cellular modules, and hybrid communication platforms,
delivering scalable and cost-effective connectivity for smart energy and
infrastructure applications.

The Company's flagship Omnimesh platform offers highly reliable, self-forming
and self-healing networks, optimised for deployment across diverse geographic
and environmental conditions. Complemented by innovations such as long-range
RF, in-meter gateways, and AI-enhanced cellular connectivity, CyanConnode
provides flexible solutions tailored to evolving utility needs.

CyanConnode's Universal Head-End System (UHES) enables seamless integration
across multiple communication technologies, enhancing interoperability and
simplifying network management at scale.

As a trusted AMISP and OEM partner, CyanConnode works with utilities, system
integrators, and meter manufacturers through a global, vendor-agnostic
ecosystem. The Company is playing a central role in the digital transformation
of the energy sector, with projects spanning India, Southeast Asia, the Middle
East, and Europe.

 

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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