Research
22/06/2023
Cash capital increase announced; PT and rating confirmed
Cash capital increase. Yesterday, cyan AG announced that it will raise fresh funds though a cash capital increase. The company plans to issue up to 1.26m new non-par value bearer shares at a placement price of EUR 1.90 per new share. We learned that cyan intends a private placement with institutional investors, signaling full commitment. In this case, the gross proceeds will amount to EUR 2.4m, providing cyan with a larger financial buffer, following a debt-to-equity swap in Spring 2023.
FY23 outlook: In terms of operational development, cyan got off to a good start into FY23. Based on solid subscriber growth and promising project opportunities, cyan expects an increase in operating revenues in a range between EUR 10.5m and EUR 13.5m and a further EBITDA improvement.
CEO leaves before end of 2023: In April, cyan announced that the CEO, Frank von Seth, will leave the company this year. According to the latest statement from May, he will prematurely leave the company by August 31, 2023, at the latest. Earlier, the company had announced that Frank von Seth would let his management contract expire at the end of the year at his own request. The process for the succession was already initiated by the company in April 2023.
Conclusion: Being nearly free of financial debt after the debt-to-equity swap in Spring, the capital increase surprised us somewhat. However, we believe that cyan is looking for more financial leeway. We continue to expect the break-even point in FY24 on EBITDA-level. While adjusting our model, we consider the diluting effect to be negligible, leaving our PT unchanged. After good performance since our initiation note, cyan shares still offer an attractive upside with 123%. We reiterate our BUY rating.
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