Why are Brainchip shares racing higher after its AGM?
This struggling semiconductor stock is having a good session. But why?
Warning: Motley Fool!!
Brainchip Holdings Ltd (ASX: BRN) shares are having a strong session on Tuesday. What's going on with the tech stock today?
www.fool.com.au
Brainchip Holdings Ltd (
ASX: BRN) shares are rebounding on Tuesday.
In afternoon trade, the struggling semiconductor company's shares are up 6% to 26.5 cents.
Why are Brainchip shares rising today?
Investors have been buying the company's shares for a couple of reasons.
One is the release of its
annual general meeting (AGM) update this morning. The other is news that the company has managed to avoid a spill of its board at this meeting.
In respect to its AGM update, Brainchip CEO, Sean Hehir, acknowledged that the company hasn't delivered meaningful revenue yet, and was disappointed by this, but remains positive on the future. He said:
Licensing deals
Hehir believes the company is close to getting an answer from some potential customers after being in discussions for over a year. He said:
The under pressure CEO has been heavily criticised for his big salary and bonuses and distinct lack of commercial success since joining. However, he remains confident on delivering the goods for shareholders. He adds:
Time will tell if this proves to be the case or if the next 12 months will just be more of the same – all hype and no substance.
Board spill avoided
Brainchip shares may also be rising today after the company avoided a disruptive board spill.
While 33.41% of votes were against its remuneration report, a sizeable 85.59% of votes were against spilling the board.