LONDON --Cyan (ISE: CYAN.L) slumped 18% to 0.385 pence this morning after announcing plans to raise 2.1 million pounds from a share placing. The system and software company revealed it would issue nearly 603 million extra shares at 0.35 pence -- a 26% discount to yesterday's 0.47 pence.
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.
Indeed, if you are keen to earn handsome returns from higher-risk shares such as Cyan, this free Motley Fool report -- "10 Steps to Making a Million in the Market" -- can help you on your way.
The report explains how tracking down small, promising companies is a vital step on the path to the magic million milestone.
What other steps do you need to take to enjoy a million from shares? Please download the report to find out, while it's still free and available.
Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors of 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.
Further Motley Fool investment opportunities:
The article Why Cyan Has Slumped 18% originally appeared on Fool.com.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.