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Looking at the skill set of the Panmure Gordon team, my guess is that they've been brought in to deal with a secondary offering. For those that don't know, a secondary offering is described as follows:
'A secondary offering is not dilutive to existing shareholders since no new shares are created. The proceeds from the sale of the securities do not benefit the issuing company in any way. The offered shares are privately held by shareholders of the issuing company, who may be directors or other insiders (such as venture capitalists) who may be looking to diversify their holdings. Usually, however, the increase in available shares allows more institutions to take non-trivial positions in the issuing company which may benefit the trading liquidity of the issuing company's shares.'
Time will tell.
GL
ITT
Hi tonyj
Thanks for your thoughts.
What's with the disconnect between the SP and the story then? Do you think that CB is correct and that the market is not giving JC the benefit of doubt, thinking that Cyan's gross margin has been further eroded to achieve the claimed revenue growth or is it something else?
I am concerned that the SP is so low but I'm still hoping for a decent outcome. To be honest, I wish I'd got out a while ago and let you lot get on with it.
Heigh-ho.
GL
ITT
Hi jakeandelwood
I think that there's a chance that market is going to be caught out with this one. A fundraise seems too obvious and dull at this moment in time to me.
I'm expecting what's coming to be more complicated than that. Not sure what 'that' is though.
GL
ITT
What might revenue materially exceeding market expectations look like?
Current expectation = £16.3m
Exceed by 3% = £16.8m
Exceed by 10% = £17.9m
What is going on here? Why is the SP still less than 9p?
Yesterday's RNS should definitely have been a trigger for a rise but others appear to know something that JC has not yet told the market. How is that right?
Hi jakeandelwood
It does appear that the market is anticipating another fundraise.
It will be interesting to see what happens to the SP if it becomes clear that a fundraise is definitely not on the cards anytime soon.
Perhaps a statement from the company?
GL
ITT
Well, if it costs $30K to sponsor the nice conference cotton bag (to cart around the endless bumph), I wonder how much it has cost Cyan for the attendees' ears?
I have thought it for a while but now I'm sure that he's just taking the pi55.
Hi jakeandelwood
Number 2 in their own statement of Compliance with the QCA Corporate Governance Code:-
"The Group seeks regular dialogue with both existing and potential new shareholders, ensuring our strategy, business model and performance are clearly understood as well as to understand the needs and expectations of shareholders."
These aren't just things put in to fill the various pages of the company's website - or am I being naive?
GL
ITT
The SP hasn't finished the day this low for 3 years.
How bad are JC & HP going to let this get before commenting?
Giving shareholders the silent treatment is no way to behave. They are directors 'running' a public company and have an obligation to keep shareholders up to date with what is going on (good or bad). As they know that they can't hide behind the parapet forever, they might as well come out and comment, sooner rather later.
Hi jakeandelwood
As we know, all parties, have supposedly been collaboratively working on this 'project' for years. The model and how it is to be financed will have been discussed over and over during this time. If JC has been led down the garden path (misunderstood the model), that's now our look out.
Let's have a trading update for Q/E 31/03/2024 and a brief statement from JC without any clangers in it.
Hi jakeandelwood
Thanks for taking the time to write to the company and for posting part of the reply.
Sounds like they are really up against it to me re Cyan's upfront costs. No good him moaning, what are JC & HP going to do to solve it - this is what the pair are paid £700K pa for i.e. not the day to day humdrum stuff.
Perhaps he regrets bragging about Cyan's 95% gross profit margin a few years ago.
To me, it sounds like we're stuffed unless JC plays ball and reduces Cyan's upfront costs.
Thanks again.
ITT
I'd say 'shortly' actually means autumn (at the earliest).
There's the election to get through (finishes early June) - definitely can't see anything happening before then.
Not to worry though, there's plenty of content/celebrations to keep the India team busy (and keep one or two happy here).
https://www.drikpanchang.com/calendars/indian/indiancalendar.html
Hi jakeandelwood
That's why I posted the following on 27/03/2024:-
The BoD have a duty of care. Failure to uphold the duty of care may result in legal action by shareholders or clients.
Along with the duty of care, the other main fiduciary duty is the duty of loyalty; the duty of loyalty seeks to prevent directors from acting against the best interests of the company.
My trust in the BoD is at 0%. I hope that I'm wrong.
GL
ITT
Hi tonyj
There is definitely a great opportunity in India for Cyan - that's why most of us are here.
If Cyan wins a significant contract, I would like to see the news reported in a UK newspaper (or two), Investor's Chronicle, Shares Magazine etc and not just in some Indian rag mag. Is that too much to ask?
When was the last time, Cyan got a mention in the Investor's Chronicle? I'll tell you, it was years & years ago.
GL
ITT