BRN Discussion Ongoing

[DingoBorat]

Hi DB,

Can't agree with you.

I don't see anything to support your suggestion that this is a buddy deal.

The options were part of MH's employment package. For reasons to which we are not privy, MH requested that the exercise period be allowed to remain as the original expiry period. The company entered into good faith negotiations with MH with a view to resolving this issue, but, again for reasons we do not know, the options lapsed before the negotiations were finalized.

As per your post, the explanatory memorandum explains the company's thinking on the matter:

The Company agreed to work with Mr Hernandez to
find an alternative to exercising the Options as this was considered to be in the best interest of
the Company and Shareholders. In so doing, the parties entered into discussions relating to
deferring the exercise of the Options. However, at the time of his resignation, it was
determined that the Company could not modify the terms of the Options without shareholder
approval or a waiver from ASX in relation to Listing Rule approval requirements for any such
modification. During the time required to investigate the proper method of modifying the
Options and negotiating the terms with Mr Hernandez, the Options ultimately lapsed. As this
occurred whilst Mr Hernandez was engaging with the Company on the process for exercise,
the Company considers it appropriate to award Mr Hernandez with the new RSUs.

Sections 200B and 200E of the Corporations Act prohibit the Company from giving a benefit
to a person who holds (or has held in the previous 3 years) a managerial or executive office
with the Company or its subsidiaries, if that benefit is given in connection with that person's
retirement from office and is in excess of that person's average annual base salary over the
relevant period, unless the benefit is approved by shareholders.

The issuance and subsequent vesting of the Restricted Stock Units will amount to the giving
of a termination benefit requiring shareholder approval in accordance with the Corporations
Act. Approval is therefore sought under sections 200B and 200E of the Corporations Act.
The Board does not consider that the issue of the Restricted Stock Units will materially
prejudice the Company or other Shareholders.

Brainchip also considers the issue of the New Rights to Mr Hernandez to be a necessary step
in the prevention of any potential claim by Mr Hernandez.

This does not read to me like a buddy deal. There was a process involving investigating the proper method of modifying the options and negotiating the terms with MH, and it was during this process that the options lapsed. This suggests that MH may have had a reasonable expectation that the matter was in the process of being resolved. Again, we do not know the specific factors which lead to the lapsing other than it appears the negotiations were ongoing at the time of lapse.

I'm not an equity lawyer, but the concept of basic fairness suggests to me that the loss of rights under these circumstances would be unfair.

Given the potential for litigation (assuming MH has an arguable case), which would be both expensive and distracting, I think the company has taken a prudent and fair course.

However, each SH is free to make their own decision on this matter and I won't presume to tell others how to vote.

You're entitled to your own opinion Diogenese.

The reason I think it's a "buddy" deal, is because I think it's likely he didn't have a million dollars in free capital to exercise the options at the time.

How could him not exercising the options and giving the Company a million dollars, possibly be in the best interests of the Company, or its shareholders?

The reason of tax selling was given.

At no time in the Company’s past, has it given consideration, to what the selling of shares (LDN for example) would do to the share price.
It's just been a case of "Well that's the Market".

@MDhere, he will have to sell a hunk almost immediately, to cover his tax, for the same reasons as the Company was supposedly protecting us from, when the share price was much higher.

The argument that this is not dilution by the Company, because the options were already granted, is baseless, as they were granted on the basis of providing the Company, with a million dollars in funds. There was also no certainty that all options would be exercised, which is completely different from the granting of the RSUs.

Now they are just a gift.

@Cirat, the whole idea, that Emmanuel Hernandez has a claim against the Company, doesn't gel with me, when it was outside normal circumstances, for the treating of the options.

His "favor" to the Company of not exercising, simply does not make sense.

 

[AusEire]

In my opinion it's pretty easy for the shorters to drive the price this low.

They basicly pumped it up got shorts in higher.

With negative campaigns they have managed to scare away any speculative buyers to invest as a result of the chaos they created on these forms.

Then kept pushing the price down with continued scare mongering false comments. Knowing the development process and macro economics are challenging.

With no new money comming in you just keep dropping the price.

I do believe they are losing time and ammo as this drop is pre release which will keep longs short tempered now edgy and likely to cave at points and sell not all but some with little pain to the shorter.

This drive obviously not supported by management but also not assisted with all the issues on ASX announcements has driven any new money till revenue kicks in.

All on my opinion.

This pre C4 drop may be their last punt IMO

All my speculation

But fear can do lots that people would not imagine.

The thing about the current scare(we're unhappy) campaign orchestrated by some in here was started by LTHs in this particular forum. The snakes then slithered in and hijacked it. This is why it's important to air your qualms directly to TD via email rather than in here. It achieves nothing and fills the forum with utter rubbish.

 

[Kachoo]

The thing about the current scare(we're unhappy) campaign orchestrated by some in here was started by LTHs in this particular forum. The snakes then slithered in and hijacked it. This is why it's important to air your qualms directly to TD via email rather than in here. It achieves nothing and fills the forum with utter rubbish.

I agree lot a of people have their motives and agendas they sell. This is a form with many unknow posters. Each has there financial goals. The negativity could draw away anyone.

Imagine if BRN was a private company that my shares in it are the percentage of the whole company. Value is way less volatile and with everything that went on and has gone on in the last year would be extreamly positive. So that said I would be a happy camper.

Being public allows investors not liquidity but it also opens up to manipulation and short term goals.

In the end I invested this for the golden egg. talking about how one achieves 100 to 500 million in revenue is not an easy task. I will just say this I feel that all these partnerships are a nessessity to accelerate growth that we are expecting. The company is not going to get that kinda revenue going door to door.

Also I believe arm who grew fast with there IP revenue is learning there is more in the pie for them then they thought. They are backed by money and this is what BRN is lacking to get moving fast.

I think this up comming presentation will only speed up our revenue. Eyes are open but nobody is moving. Arm is hungry for money there investors are expecting returns. How else will they go in for a bigger piece of the pie? IMO

 

[MaxwellAnne]

Strongest attacks on the social media channels I’ve observed for some time.
Everything from subtle handwringing (designed to sow doubt) to outright advise to sell.
Got my contrarian Spidey sense tingling.
And to think, I used to think this share racket was just about picking and investing in good companies.

We, as relatively small parcel minority holders will only ever know 1). whatever is publicly released by the Company, 2). what is let slip in error or by design by insiders, or 3). what is leaked by other players for their own purposes.
Brainchip (unlike other entities) doesn’t appear to leak.
This place is full of dots and supposed dot joining with magnificent hounds and cool cats hoovering up possibilities from all over the interweb, some of which seem to come to some kind of verifiable fruition but much of which is perhaps wishful thinking.

For me, bottom line is, you either trust and back the Company and its management and their recommendations or you don’t.
After all, they are in possession of far more data points regarding the business than anyone else, most certainly you, or I.
So, either they are lying, incompetent, or telling us as much of the truth as they are able to at any given time.
Why I go to the AGM, to look into these peoples eyes, and hear unedited and unfiltered, just what they have to say.

If, being perfect beings living in a perfect world, you have never made an error, never reconsidered strategies or directions based on evidence revealed over time, never fluffed a word due to excitement or weariness, then cast more stones.

And of course, the burger flippers we hire are a dime a dozen.
Easily replaceable. Let’s sack ‘em all now (think how much we’ll save) and then when people walk in asking for their flake and scoop of Akida’s (hold the vinegar) we can dash down to Macca’s and just hire ‘em back.
Obviously we’ll have to flip that switch on their necks to turn on the genius mode so they can do warp speed coding to catch up with the teams at the big boys who have since eroded our competitive advantage.

Guess there will always be those who fall at the last hurdle, and, looking up through the dust, cry plaintively at the departing bus.

Gamble responsibly

Great post @HopalongPetrovski !

 

[jk6199]

I'm trying to work out if there are shorters getting out at the moment, or after the "lumpy" and maybe later this year revenue from the podcast, shorters getting in to push it further down?

Just asking for a friend before he tries to buy more and remains dog housed.

 

[DK6161]

The thing about the current scare(we're unhappy) campaign orchestrated by some in here was started by LTHs in this particular forum. The snakes then slithered in and hijacked it. This is why it's important to air your qualms directly to TD via email rather than in here. It achieves nothing and fills the forum with utter rubbish.

Sorry to be a pain to ya mate, but isn't this what these forums are for - to discuss anything related to the company? Sometimes you have to take some of negatives and frustrations from us shareholders. Not all roses.
Calling some members snakes is just utter silly.
Some of us tried getting answers and updates from the company, but all we getting is the silent "NDA" treatment and about giving up free shares to ex employees.

 

[alwaysgreen]

I think some people blaming negative posts for lower share price are stupid... lol

Howcome all the upramps are not driving the share price up??

Maybe they did

Seriously though, if anyone on here thinks a few negative posts in this forum influences the share price, they are kidding themselves.

This is a short campaign. One of the biggest on the ASX (we are in the top 10 for most shorted stocks). A few posters on here airing their grievances is not going to move the SP from over $2 to under 40 cents.

 

[Mt09]

Fucken hell, never thought we’d see the 30’s again..

 

[Kachoo]

I think some people blaming negative posts for lower share price are stupid... lol

Howcome all the upramps are not driving the share price up??

I think it's a balance that is healthy a debate is good. It has likely scared away potential investors.

Especially when the same person yelling it's going to 8 dollars is now saying we will go down down. There is not much difference other then the hype that is all thats changed.

One item could be sustainable revenue aka royalty has been pushed by one year possibly. The other items that are happening are pretty big we are on various companies pages as partners. This stuff does lead to revenue.

In the past like some point out on the failed attempts of studio we did not have these ecosystems in place it was just us. Strenght is in numbers will lead us I believe.

If the product is great then we should see the light.

So far there has been nobody come forward to challenge Akida and say we are better. IMO

 

[Boab]

Fucken hell, never thought we’d see the 30’s again..

Aussie Super allowed me to buy more so I did.
My lowest price so far and I hope it stays that way.
I reckon I've got enough now.

 

[db1969oz]

I think it's a balance that is healthy a debate is good. It has likely scared away potential investors.

Especially when the same person yelling it's going to 8 dollars is now saying we will go down down. There is not much difference other then the hype that is all thats changed.

One item could be sustainable revenue aka royalty has been pushed by one year possibly. The other items that are happening are pretty big we are on various companies pages as partners. This stuff does lead to revenue.

In the past like some point out on the failed attempts of studio we did not have these ecosystems in place it was just us. Strenght is in numbers will lead us I believe.

If the product is great then we should see the light.

So far there has been nobody come forward to challenge Akida and say we are better. IMO

I don’t think potential investors would even know about this site, maybe the crapper.

 

[AusEire]

Sorry to be a pain to ya mate, but isn't this what these forums are for - to discuss anything related to the company? Sometimes you have to take some of negatives and frustrations from us shareholders. Not all roses.
Calling some members snakes is just utter silly.
Some of us tried getting answers and updates from the company, but all we getting is the silent "NDA" treatment and about giving up free shares to ex employees.

This forum was built so the people who were fed up with HC could get away from the bs and share any research they've done and discuss it. It wasn't developed so SH could share their feelings.

Now that being said I've no problem with someone saying that they have x problem then discussing it and moving on. We even created a thread for it. But they continue to harp on about the same points everyday and refuse to accept that others have an opposing view.

And yes I'm going to double down on the snakes comment. Because there are/was posters in here who have taken the opportunity to drag the forum sentiment down. Some went so far as saying that they would continue to "whinge" because they they can. Go across to HC and you'll find these same users doing the same thing and feeding the well known d******ds over there with more ammo.

As far as I'm concerned absolutely nothing has changed fundamentally in the company from when we were $2.34 to today when we're sub 40c.

 

[Kachoo]

I don’t think potential investors would even know about this site, maybe the crapper.

True but they would find this one too. It's a combination of events and issues that caused price to slip but clearly it's being shorted hard.

I the end it's not about the fake volume traded it's the net money comming in or out of the stock. At the moment many are still selling for reasons that's theirs allowing for ease to have shorts assist in the price drop. Only way to explain why institutions have even more shares then before.

 

[Bravo]

When all the rats come out to play, I try to remain calm and balanced and keep the big picture in mind.

A total of 98 submissions were evaluated at the Embedded World Conference from some of the most innovative and top performing tech companies globally and WE were awarded the Embeddy IP winner for AKIDA 2nd Gen.

Some people just can't see the forest for the trees it would appear.

And there are definitely some characters here IMO who are determined to sow fear for their own advantage.

 

[TECH]

Tomorrow or Friday all shall be revealed, including more detail on the LDA Capital obligation, which I am looking forward to reading.

Our company has knocked any fluff statements on the head, so no matter what you may or may not think, those days of snake oil
salespersons is long gone...the company issue facts, with announcements when legally required to.

It's not easy for any shareholder, long term or not to see our share price being punished in the manner it has been for way too long,
but in some ways it's really reflective of a company whose revenue doesn't match up to expectations just yet.

Sean did make a comment about building up/out our EAP'S in regard to AKD 2.0 which is all part of the business plan, but what about
all the EAP'S who've been with us for years, I would like the current number of "active" players that are still engaged with us.

I also agree with a number of posters with regards the company whom we won over but pulled the pin at the most critical stage, from
memory it's not a dead duck as such , it's been put on hold, which really means nothing. I think a little more detail wouldn't be asking
too much, it was important enough to mention, wasn't it ?

Tech

 

[Foxdog]

When all the rats come out to play, I try to remain calm and balanced and keep the big picture in mind.

A total of 98 submissions were evaluated at the Embedded World Conference from some of the most innovative and top performing tech companies globally and WE were awarded the Embeddy IP winner for AKIDA 2nd Gen.

Some people just can't see the forest for the trees it would appear.

And there are definitely some characters here IMO who are determined to sow fear for their own advantage.
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Yep, it's fricken weird how an announcement like this has no positive effect on the SP. Afterall this is serious validation of GEN 2 and suggests that the customers who wanted the 'upgrades' will likely be pretty happy too. Get busy 'pit crew' and sell some IP

 

[Meatloaf]

This forum was built so the people who were fed up with HC could get away from the bs and share any research they've done and discuss it. It wasn't developed so SH could share their feelings.

Now that being said I've no problem with someone saying that they have x problem then discussing it and moving on. We even created a thread for it. But they continue to harp on about the same points everyday and refuse to accept that others have an opposing view.

And yes I'm going to double down on the snakes comment. Because there are/was posters in here who have taken the opportunity to drag the forum sentiment down. Some went so far as saying that they would continue to "whinge" because they they can. Go across to HC and you'll find these same users doing the same thing and feeding the well known d******ds over there with more ammo.

As far as I'm concerned absolutely nothing has changed fundamentally in the company from when we were $2.34 to today when we're sub 40c.

I agree with what you have stated but unfortunately until BRN start earning decent revenue, shorters will be able to manipulate the SP.
Some of the shorters could also be BRN competitors making it tougher for them to move forward.
But we also have to look at the facts. Brn did bring out Akida and then the customers were like: can you get it to do this, can it be used for that and so forth. Truth is that they had to go back to the drawing board and reinvent Akida so it can capture a larger market. Time was wasted and now SH are like: so where are the contracts, where’s the revenue?
I expected the SP, by now, to be somewhere between $2-$3 but it has gone back to under 40 cents. Reason: no announcement of new contracts and revenue remains limited.
I support Brn and am a LTH but if they don’t pull their finger out they might miss a great opportunity to turn this into a multibillion dollar company.
It’s all very well to hold podcasts and talk about innovation and how great Akida is but now is the time to produce results. I’ve placed a substantial amount of money on their shares based on what they have promised. We need results, full stop.

 

[Kachoo]

Yep, it's fricken weird how an announcement like this has no positive effect on the SP. Afterall this is serious validation of GEN 2 and suggests that the customers who wanted the 'upgrades' will likely be pretty happy too. Get busy 'pit crew' and sell some IP

The memo has not come out to the shorters to go long again!.

I mean Peter and BRN could release Akida 3.0 and the price will go down.

In the end you need to see are you buying that Lamborghini at a discount or not. IMO

 

[Quatrojos]

Yep, it's fricken weird how an announcement like this has no positive effect on the SP. Afterall this is serious validation of GEN 2 and suggests that the customers who wanted the 'upgrades' will likely be pretty happy too. Get busy 'pit crew' and sell some IP

Maybe they should actually announce on asx… nah, twitter’s fine…