Thank you FF. I believe that there may be some people who have a misunderstanding about Brainchip's and LDA's agreement. If they still have have concerns I recommend that they contact Tony.The Brainchip LDA Capital notification:
Sydney – 10 January 2023 – BrainChip Holdings Ltd (ASX: BRN), a leading provider of ultra-low power, high-performance AI processor technology today announced that
the company has submitted a capital call notice to LDA Capital Limited and LDA Capital LLC (LDA) to subscribe for up to 30,000,000 shares with an option for LDA to subscribe up to an additional 10,000,000 shares subject to company approval.
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).
The Capital Call Notice pricing period will begin upon exercise of the put option on or around 11 January, with an anticipated ending date in late March or early April, subject to adjustments based on the share price performance throughout the pricing period.
The issue price for the capital call shares will be 91.5% of the higher of the average daily VWAP of shares over the pricing period (subject to any applicable adjustments) and the minimum price notified to LDA Capital by the Company.
As of the date of the capital call notice, available funding under the agreement amounts to $27.9M while the company is committed to drawing down a minimum of $15 M no later than 31 December 2023.“The proceeds raised from the capital call will be used to accelerate our innovation of the groundbreaking Akida technology as we extend our industry leadership in Edge AI. In 2023 the company will tape out another chip and release significant enhancements to our IP offering”, said BrainChip CEO Sean Hehir. Mr. Hehir went on to say “Additionally, we will further expand our go-to-market capabilities by hiring sales personnel in key international markets, as well as increase our domestic sales and marketing headcount.”
So LDA Capital on about 11.1.23 commenced selling in an effort to dispose of 30 million shares at or above the minimum price notified by Brainchip.
If they sold a miserable one million shares every trading day it would take 30 days according to the mathematical genius Blind Freddie.
Today we are around 49 trading days from 11.1.23 yet we have two to three weeks of dumping still to go???
To have two to three weeks LDA Capital would need to have been selling a tiny half a million shares each trading day as this would take 60 days according to Blind Freddie.
I doubt that if every one of the last 49 days someone selling 500,000 shares to crush the price would do so particularly sprinkled over the whole trading day.
Of course sprinkled they would be as the interests of LDA Capital align with Brainchip. LDA Capital get 8.5% of the sale price and can only sell if the sale price available is above the minimum set by Brainchip.
Driving down the price below the set price would mean that LDA Capital would loose money.
This coalition of the interests of LDA Capital, Brainchip and shareholders is what distinguishes this method from every other generally employed method available for raising capital.
My opinion only DYOR
FF
AKIDA BALLISTA