Cyanconnode Regulatory News (CYAN)

Cyan Holdings plc

("Cyan" or "the Company")

Issue of Equity

Cyan (AIM: CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, is pleased to announce that it has raised £450,000 by way of a subscription for 250,000,000 ordinary shares of 0.01p each ("Subscription Shares") at a price of 0.18 pence per share (the "Issue Price") (the "Subscription"), representing a premium of 20 per cent. to the closing mid-market share price on 16 March 2016.

Highlights

· Issue of 250,000,000 Subscription Shares subscribed by new and existing private investors to raise proceeds of £450,000

· The Issue Price represents a premium of 20 per cent. to the closing mid-market price of 0.15 pence on 16 March 2016, being the latest dealing day prior to the announcement of the Subscription

· The proceeds of the Subscription will be used for working capital purposes

· The Subscription is not underwritten. The Subscription is conditional only upon admission of the Subscription Shares to trading on AIM

The Subscription has been undertaken pursuant to the general authorities granted to the board of directors at the general meeting of the Company held on 30 June 2015 and therefore no further shareholder approval is required. The Company has received HMRC confirmation that the Subscription Shares will qualify for EIS tax relief under the Company's existing EIS headroom of up to £12.6M (of which £3.9M is available in the 12 month period to June 2016, and £535k still available at the Issue Price under the general authorities granted to the board of directors in June 2015).

Following the admission of the new Ordinary Shares, the Company's total issued share capital will be 7,080,506,012 ordinary shares of 0.01 pence each. This figure of 7,080,506,012 may be used by shareholders as the denominator by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.

Application will be made for the admission of the Subscription Shares to trading on AIM and it is expected that the Subscription Shares will be admitted to trading on AIM at 8.00 a.m. on 23 March 2016. The Subscription Shares will rank pari passu in all respects with the Company's existing ordinary shares of 0.01 pence each.

John Cronin, Executive Chairman of Cyan, commented:

"I was delighted to be approached by new investors wishing to take advantage of the EIS tax relief available through investments in Cyan during the tax year ending on 5th April 2016. I was particularly pleased that we were able to secure these investments at a premium to the current share price. I'd like to welcome our new shareholders and thank the existing shareholders for their continued support."

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