BRN Discussion Ongoing

[Gazzafish]

Strange how the number of buyers and sellers and “surplus volume” all still change slowly during a trading halt… not sure how this is permitted ..

 

[Guzzi62]

Maybe they decided to tap out Akida 2000 themselves?

Or as mentioned, some big player is buying a big stake of the company?

 

[Tezza]

I truely hope you're joking.
Many people don't understand that you need to spend money to make money.
Attract and pay for the best people in the industry.
Continue paying for laid research and marketing (Pitt Street).
Research new techs.
Travel and negotiate deals.
Etc.

Not advice.

It was meant Tongue in cheek. Interesting you mention travel and negotiate deals. If heard about the travel not alot about deals. I have been in for quiet some time and the term near future has been touted for a couple of years now.

 

[skutza]

Fair enough and you may be right. But I prefer to have a positive mindset in order to ward off debilitating depression for as long as possible.

Who is to say it won't be a cap raise with a cornerstone investment from the likes of Tata or Arm?

Yes we can be positive.

But the wording is not stating the likes. Either their PR is the worst in the history in any company ever, or it's just a normal discounted CR ......

Lets hope their PR department suck dik

 

[Tezza]

Is it normal for a TH regarding a CR to take this long? I know they have till Thursday but is this normal

 

[BigDonger101]

I just got off the phone with GOD. He explained to me that Mercedes are know very happy to use Akida and they will be a cornerstone investor for BRN going forward.




Then I woke up and thought, well it says CR nothing to do with a partnership deal etc. So all hopes of this are gone. We can be as positive as we want, as hopeful as you want, but reality is, its just a CR.

No clue what you're say. But anyways.

BRN haven't performed a capital raise since 2017. Usually we will just use LDA for further capital. For whatever reason, they haven't done this.

Your guess is as good as mine.

 

[TECH]

Good afternoon on the East Coast,

The Board have obviously had meeting/s and discussed at length why a Capital Raise is required, coming only 2 months after our
AGM.

We carry no debt.

We have an ongoing arrangement with LDA Capital.

We had only recently entered into an agreement with LDA Capital, so something has changed to possibly force our hand, whether that
be by another company entering the equation or a business model readjustment from within, I wouldn't know.

You may remember last month I mentioned how our CFO, Ken Scarince was receiving/converting around 5 million shares (happy to be
corrected), was this a reward for a set milestone being achieved by Ken, I wouldn't know.

Are we going to do a chip run, AKD I or AKD II ?

Lastly, we are an IP provider, but it appears to me at least, that something has changed, meaning an opportunity could well have
presented itself, and the Board are going for it, and finally if Antonio voted for this Capital Raise, well he has my backing, there's a
solid reason behind this decision which will play out in time, there's that bloody word again...TIME !

Cheers for the Wild West....Tech

 

[TheDrooben]

Is it normal for a TH regarding a CR to take this long? I know they have till Thursday but is this normal

Par for the course Tezza...if after 2 days there is no announcement then a suspension will follow. All standard procedures for ASX. Going to be interesting the explanation for the cap raise. If only the standard "working capital" line comes out Larry won't be happy. Interesting that the ann doesn't say "potential capital raising" like a lot of others do. Maybe Larry is looking to far into the petty details.......

 

[Bravo]

How am I going to make it to Thursday?

 

[McHale]

The pricing period for the last capital call with LDA, was supposed to end "the sooner of" the 7th of June, or until the shares had been fully subscribed (40 million shares) to satisfy the obligated draw down of 12 million USD by 31 of December 2024 (of which 1.1 million had already been drawn down).

https://announcements.asx.com.au/asxpdf/20240327/pdf/061xk7jk4k6zwb.pdf

We know that according to Sean, the obligation had not been met yet, by the AGM.

We had just under 13 million USD at the end of the last quarter and a cash burn of around 4.5 million USD for it.

So if we had received the appropriately 11 million USD from the previous call, we should still have around 19 to 20 million USD, after the last as yet unreported quarter, assuming similar cash burn?

I think there's a stong possibility, that there are shares outstanding to be sold by LDA (due to the share price dropping through the Company's set threshold) that a new call, with revised parameters, needs to be set for the remainder??..

Hi DB

At the end of last Qtr BRN had US$13m at bank, since end last Qtr another $12m from the last LDA drawdown, on average recent Qtrly burn rates BRN has enough cash to burn for next 18 months, late in 2023 BRN also extended their arrangement with LDA into late 2025, so there are no pressing money concerns, that we know of.

This CR is about something we don't know about i.e. chip fabrication, cornerstone investor, there are a number of possibilities, I am on the hop, but am sure after initial surprise we will see some interesting speculations here.

I am no fan of dilution, and want to see contracts fall, but I strongly suspect an interesting development here......well I hope so anyway.

 

[FJ-215]

Last full year ended Dec 2023 net loss was US$28.9M
If we are burning more cash (hopefully for good reason, apart from wages) with less revenue we could have gone through US$15M already.

Hi Boab,

The loss of US$28M is not cash. For memory US $11M+ was share based payments to staff. The actual cash burn was between US$16 to 17M.

 

[Quiltman]

It has occurred to me with the retirement ( or partial retirement ) of Peter and Anil, how would they release some funds from their share holding to fund their retirement without spooking the market. No-one can wait forever ... you could be dead tomorrow !
Without positions on the board they would not need to declare such sales via ASX ( I'm assuming )... but nonetheless, extreme caution would be required.

A new cornerstone investor could help enormously.
As well as issuing new shares to the new investor, Peter & Anil may be able to sell a portion of their holding to this entity, thereby reducing dilution for all shareholders, and creating some $'s for them. IMO this would be received well by the market, particularly if the new investor held some gravitas in the industry ... and the exchange was at a premium.

Just a thought.

cheers

 

[charles2]

Sean has indicated big news within this timeframe.

Maybe this is the setup for something good.

 

[Pom down under]

How am I going to make it to Thursday?



View attachment 66899



View attachment 66900

I might have a few to soften the blow

 

[FJ-215]

Hi DB

At the end of last Qtr BRN had US$31m at bank, on average recent Qtrly burn rates BRN has enough cash to burn for next 18 to 24 months, late in 2023 BRN also extended their arrangement with LDA into late 2025, so there are no pressing money concerns, that we know of.

This CR is about something we don't know about i.e. chip fabrication, cornerstone investor, there are a number of possibilities, I am on the hop, but am sure after initial surprise we will see some interesting speculations here.

I am no fan of dilution, and want to see contracts fall, but I strongly suspect an interesting development here......well I hope so anyway.

Hi McHale,

My guess is that the last LDA call fell short. The top 50 list that accompanied the 4C, showed that they had only sold 13.4M shares of the 40M they were given. After the 4c came out the SP fell below 30 cents so probably as @DingoBorat pointed out, below the agreed minimum selling point.

Why didn't the BoD just lower the price for LDA? Maybe they were expecting good news in May for the successful deployment of ANT61 to help kick the SP along.

One other note, BRN report in USD but the LDA agreement and call amounts are in AUD. The last call was for AUD$12 M not USD.

 

[AI_Inquirer]

I recall Sean mentioning (perhaps at the AGM) that he was hesitant to tape out Akida 2.0, as he didn’t want to compete with companies that may want to license the IP and manufacture their own chips. Something along those lines, anyway.

I would be surprised if it is for a 2.0 tape out, and if it were, it probably wouldn’t be a good sign, indicating that others aren’t planning to produce chips with 2.0.

 

[Getupthere]

Maybe they decided to tap out Akida 2000 themselves?

Or as mentioned, some big player is buying a big stake of the company?

The akida 2000 Tap out was the first thing that came to me about the CR.

I will be extremely pissed off if that’s the case because they should have done the tap out 6 to 8 months ago instead of telling everyone that the Tap out was not required and they didn’t won’t to compete with there current customers.


let’s wait and see what the reason is for, we currently have sufficient operating cash from LDA

 

[7für7]

I think we are about to close a big deal where we need to invest a lot ourselves! Just imagine... a deal with a major company in that segment... bam! Otherwise LDA would be in da house

My innocent thoughts

 

[7für7]

No clue what you're say. But anyways.

BRN haven't performed a capital raise since 2017. Usually we will just use LDA for further capital. For whatever reason, they haven't done this.

Your guess is as good as mine.

Exactly!!

 

[FJ-215]

I think we are about to close a big deal where we need to invest a lot ourselves! Just imagine... a deal with a major company in that segment... bam! Otherwise LDA would be in da house

My innocent thoughts

If there was a major deal then we should be using LDA. The funding model should lead to less shareholder dilution if there is a large rise in the SP, otherwise we are just selling more shares at a discount.