CyanConnode soars after successful fundraising
9.14am: Radio specialist in demand
CyanConnode (LON:CYAN), which specialises in narrowband radio frequency networks allowing machine to machine communication, has successfully raised £3.15mln to boost its balance sheet.
The company issued new shares at 9.5p each in a heavily oversubscribed placing and subscription, with three directors taking part.
It said the funds would be used to strengthen its balance sheet and increase working capital, to allow it to continue to take advantage of its significant growth opportunities and to execute its growing order book and pipeline.
In particular it has won business in India related to the country’s roll out of smart meters.
At the same time it has had to cope with supply problems.
It said: ” Despite seeing a worldwide shortage of semiconductors, CyanConnode has taken steps to mitigate such shortages by purchasing components from alternative suppliers. However, in some cases it has become necessary to make advance payments to secure the supply of semiconductors used in the module manufacturing process.”
Executive chairman John Cronin said: “We are pleased to announce this fundraising, at this time of growth and with an increasing number of opportunities being presented to the company. As we have recently announced, last financial year was our most successful to date and we expect further improvements during this current financial year. The funds raised by this placing will strengthen our balance sheet and allow us to maintain momentum and enable further expansion.”
Its shares are 18.28% higher at 11p.
8.38am: Food business sees first half earnings soar – partly thanks to rain
The business – which supplies not just beef but chicken, pork, dairy and cereals across Zambia, Nigeria and Ghana – confirmed its previous expectations that profits for the year to September would be 20%-30% ahead of market forecasts.
Earnings for the half year to March are now expected to be 2167% higher in dollar terms than the same time last year, after a strong start to the year.
It benefited from cost controls, and also the weather.
It said: “Improvements in the load shedding situation, following the good regional rains, resulted in reduced generator fuel expenditure and improved production efficiencies.”
There were some caveats: “The half year period continued to present challenges in the operating environment, resulting from the COVID-19 pandemic and the previous 2020 economic uncertainties, despite greater stability compared to the second half of the 2020 financial year.
“Rising inflation put pressure on consumer disposable incomes and reduced the share of wallet going towards food spend. Supply constraints on some of Zambeef’s product lines further put pressure on cost of inputs. Despite the challenges, demand for products, particular poultry products, remained strong allowing the company to remain inline with revenue expectations.”
The company’s shares have jumped 14.82% or 1p to 7.75p.
Elsewhere Kazera Global PLC, the mining group seeking financing for its Tantalite Valley project in Namibia, now has two investors interested in providing funding.
The company already had on board an initial investor who was prepared to provide €9,130,000, which will fund the development of the mine and the building of the Orange River pipeline.
Now a second Namibian investor has signed agreed initial terms to subscribe US$11mln for 290,576,383 shares in the Company.
Either transaction would give a price of approximately 2.7 pence per share and give the investor 29.34% of the company.
The company said it would complete a transaction with the first of these investors who was able to deliver the funds.
Larry Johnson, Kazera joint chief executive officer, said:
“Our focus remains on finding a financial solution for the creation of the Orange River pipeline, which, once completed, will support the restarting of production from our Tantalite Mine. Whilst we await completion of one of these financing solutions, DJ Drilling [the mine’s operator] and Kazera have turned our attention to making sure that the mine is ready to restart operations and that our road networks and equipment currently on site are ready.”
Meanwhile tantalum assay results have attracted the interest of two large end users and negotiations are now progressing for long term supply.
And at its diamond mine, drilling continues and “meaningful” cash flow is now being generated.
Kazera’s shares are up 18.64% at 1.75p.