- BrainChip submits a capital call notice to LDA Capital to subscribe for up to 15,000,000 shares.
- BRN expects to draw AU$20 million of funds from the agreement.
- Backed by this announcement, the Company’s shares were spotted trading 28.571% higher at AU$1.800 per share on ASX at 1:03 PM AEDT.
ASX-listed Australia-based technology company, that delivers artificial intelligence applications BrainChip Holdings Ltd (ASX:BRN), shared on Friday that the Company has submitted a capital call notice to LDA Capital Limited concerning subscription of up to 15,000,000 shares.
The Company revealed that the terms of the Put Option Agreement between the Company and LDA were announced to ASX on 13 August 2020 and 26 October 2020 (First Amendment) and again on 13 October 2021 (Second Amendment).
Today’s announcement says that as of the date of the capital call notice, available funding under the agreement amounts to AU$50.3 million. At the same time, the Company is committed to drawing down a minimum of AU$35.3 million no later than 31 December 2023.
The Company has maintained that the agreement will help it finance the Akida commercialisation strategy and encourage the development of successive generations of its technology.
About the capital call:
An announcement dated 13 October 2021 held that both BrainChip and LDA Capital have agreed to an amendment to a Put Option Agreement that will provide BRN with access to capital, when necessary, until December 2023, increasing the total available funding to AU$65million. The agreement enabled BrainChip to issue LDA Capital with new shares when it requires funding at ~90% of the volume-weighted average price during a particular pricing period.
Commenting on this development, BrainChip CEO Sean Hehir held that the proceeds generated from the capital call would be used to expand the Company’s go-to-market capabilities as it moves into the commercialisation phase. Hehir added that the Company would accelerate its continuous innovation of the groundbreaking Akida technology to ensure it remains the industry leader in Edge AI.