LONDON (ShareCast) - Cyan Holdings has raised one million dollars as it waits for a decision on an electricity metre contract in India.

The company sold 223m new ordinary shares at price of 0.45p per share to raise the funding needed to tide it over until an agreement is reached with the Tamil Nadu Electricity Board (TNEB).

Cyan said the tender attribution process has been delayed, but it appears to be moving towards a conclusion.

Due to the setback the group decided to raise funding for the expansion of the company's activities in India and to bolster the balance sheet.

"The TNEB contract is clearly taking longer than expected, and whilst it was a difficult decision for the board to further dilute shareholders, we believe it is in their best interest to provide further capital for the future development of the company in the region as well as strengthening the balance sheet at this key time during the tender attribution process,” said Executive Chairman John Cronin.

Shares fell 9.73% to 0.51p at 11:52 Friday.

RD

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