Hi Krustor
As
@VictorG posted a company must publish on the ASX full details of any event that a reasonable person would expect to have a material effect on the share price.
The event can be a positive or a negative event. For example if the company is making a product to sell the successful or unsuccessful production of the product could be a material event and require an announcement on the ASX.
The successful production of AKD1000 is a good example.
When a company signs a contract or enters a partnership it has to decide if this contract or partnership is material and the guidance from the ASX is that if it does not have a dollar value that can be calculated with certainty it is not something which meets the definition of being material and announced on the ASX.
So MegaChips was able to be announced because they could calculate the value of the licence fee. If there was no upfront licence fee and just the hope of future royalties Brainchip would not have been allowed to announce it on the ASX.
The partnership with ARM could not be announced on the ASX because neither Brainchip or ARM could put a dollar amount on what sales this partnership was likely to generate in the future.
The real problem for companies is that they have to decide if the event is price sensitive and and whether to publish or not publish on the
ASX.
The ASX only decides if the company did the right thing afterwards. If the ASX decides the company made the wrong choice they can penalise and suspend the company and Directors.
It is like having a highway where there are no speed signs to tell you what the speed limit is and it is up to you to guess what speed you are allowed to travel.
You are not allowed to ask the police on duty what speed is legal but if you make the wrong choice the police jump out and take away your car and fine you for travelling too fast or too slow.
This is how the ASX works.
Brainchip has the intention of listing on the Nasdaq one day and so as their good character as a company is a consideration they are taking a very cautious approach to the ASX Rules so that they do not have adverse notations by the ASX to explain to the Nasdaq.
The Non Disclosure Agreements are a separate issue as these are between Brainchip and third parties that have nothing to do with the ASX.
If Brainchip enters a material contract with a company even if they have a non disclosure agreement this material agreement has to be announced in accordance with the Rules on the ASX.
The non disclosure agreement does not override the ASX Rules.
I hope this helps your understanding.
My opinion only DYOR
FF
AKIDA BALLISTA