Cyan confirmed that the placing's proceeds would be used to help establish the firm's position within the Indian "smart metering" market and, in particular, win a contract with the Tamil Nadu Electricity Board.
Cyan's technology has already been integrated into five utility meter manufacturers in India and, earlier this year, the group received an order exceeding $1 million to fulfill the initial stages of a number of projects.
Executive chairman John Cronin urged shareholders to approve the proposed share placing in order to "safeguard their investment." He also believes Cyan "remains in an outstanding position to secure substantial revenues from a very large market."
Such optimism could make today's share-price fall a buying opportunity. Although Cyan's 6 million pound market cap and checkered history have left this share well under the City's radar, long-term success in India could spur an enormous recovery.
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Maynard Paton does not own shares in Cyan. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.