BRN Discussion Ongoing

[DingoBorat]

Subject to shareholder and Australian court approval.

View attachment 78277

Off the bat, I don't approve

 

[Diogenese]

From ChatGPT

The re-domiciling of BrainChip to the U.S. and the transition from the ASX to a U.S. stock exchange could have significant implications for short sellers. Here’s how it might play out:

1. What Happens to Existing Short Positions?​

Short sellers profit by borrowing shares, selling them at a higher price, and then buying them back later at a lower price. However, when a company delists and moves to a new exchange:

• Short positions need to be closed out before delisting – If BrainChip shares are removed from the ASX, short sellers will likely be forced to cover (buy back) their positions before the delisting date. This can cause a short squeeze if many need to buy shares at once, driving the price up.
• New U.S. shares may not be borrowable immediately – Even if the company relists on a U.S. exchange, the ability to short the stock depends on brokers having available shares to lend. If these are not readily available, shorting could become more difficult, at least temporarily.

2. Could Short Sellers Get Caught Out?​

Yes, here’s how:

• Forced Buybacks (Short Squeeze) – If short sellers are unable to roll over their positions due to the ASX delisting, they will be forced to buy shares before the transition, potentially pushing prices up.
• Change in Market Dynamics – The U.S. market generally has more institutional investors who may have a different valuation perspective, reducing speculative shorting pressure.
• Different Regulatory Environment – The U.S. has different short-selling regulations, including tighter enforcement of naked short selling (selling shares without actually borrowing them). If BrainChip moves to an exchange like the NASDAQ or NYSE, this could limit some of the aggressive shorting seen on the ASX.

3. Possible Risks for Short Sellers​

• Unexpected Buy Orders – If BrainChip announces a buyout, new partnerships, or U.S. institutional interest, short sellers may find themselves covering at much higher prices.
• Regulatory Hurdles – The SEC has been more aggressive in cracking down on market manipulation. Any hedge funds using illegal tactics might face investigations.
• Retail and Institutional Buying Pressure – The stock's exposure to U.S. technology investors (who may value AI companies differently) could make it harder for short sellers to justify their positions.

4. Will They Be Forced to Cover?​

Most likely, yes—at least on the ASX. Short sellers holding positions on ASX-listed BRN will need to close their trades before the stock delists. Some may try to reopen short positions on the U.S. exchange, but if the stock gains buying momentum (from retail or institutional investors), it could become riskier for them.

5. Could This Create a Short Squeeze?​

• If a large number of shorts rush to close their positions before the ASX delisting, the share price could spike sharply in the short term.
• If there’s a scarcity of available shares to short on the U.S. exchange, shorting could become less aggressive post-move.

Bottom Line​

The re-domiciling could put short sellers in a tight spot, especially if they are forced to close their positions before the ASX delisting. While some may re-establish positions on the U.S. exchange, changes in market participants, regulation, and potential new investor interest could alter the stock’s dynamics significantly. If BrainChip executes this transition well, shorters could lose their grip on the stock, at least temporarily.

Looks like we're going to need to set up a GoFundMe site for the shorters.

 

[Fullmoonfever]

This link should answer questions for interested parties. www.listingcenter.nasdaq.com View attachment 78272

There is also the SPAC path of which I'm not sure if that would or wouldn't work for them.

https://www.nasdaq.com/solutions/listings/markets/americas/ways-to-list/spac

 

[Luppo71]

Off the bat, I don't approve

Could be a lot of people feel the same if Australian Super is a no go with investing in a US company of this size.
Mine is on a couple etf's. i think.
1/4 of my investment gone in a wink.

 

[Guzzi62]

Likely a good move for the future of the company.

Some kind of reverse split is necessary to do that, we are currently on the US OTC at app 18 US cent a share.

OTC is a bad place to be, no institutions buy OTC stocks and no analysts cover them.

In order to get on Nasdaq, I think an SP of $5 is minimum requirement: Jeez, a split of 30/1 in order to get over 5 bucks a share.

So if I am correct, and they do it, we can divide our shares with 30 to see what you will end up with.

I don't know if above is correct or not, please do your own DD.

I think they should do it, I will support the management in this.

 

[Diogenese]

Would the listing be on the Nasdaq? Are we supposed to have revenue before then?

You've said the quiet part ... maybe the board doesn't know that bit, or ...

 

[Smoothsailing]

If I were to speculate, perhaps they have secured a deal involving the U.S. military, or big corporate and remaining listed on the ASX would require disclosures that they’d prefer to avoid under its rules..? Lol...

Otherwise such a random timing....

I agree it feels like the USA Defence force has a BIG play with BRN moving forward.
I would not be surprised if Elon and Trump will be involved at some point in our future.
Go Brainchip

 

[7für7]

what if they do reverse split to get the share price up? This would be a pain in the a… for many small retail investors… they would lose money and shares … I really don’t know how they could reach the higher share price. 🫥

 

[equanimous]

Looks like we're going to need to set up a GoFundMe site for the shorters.

they can go to centrelink

 

[manny100]

I think its a good move to list in the US. I think it likely means that we are expecting to see an accelerated pick in news concerning engagements coming to fruition.
I think long term it will be very good for the company and its growth.. .. and our wealth.
Now we know why they organised the LDA funding.
Probably the reason Anil Mankar sold the shares? Not sure of the Tax position.
I am very positive about this.

 

[Diogenese]

Well, that's one way to get everybody off talking about the lack of revenue.
Guess it was inevitable that we'd be shifting to USA.
Probably where we belong.
I guess I'd just hoped it would have been through acquisition after a healthy bidding war made us all rich.
Not crazy about a consolidation in the meantime to jack our price up to a marketable level though.
Sure hope we get some share price appreciation in the interim so as to make selling off my holdings in retail super worthwhile.
Anyway, glad they are giving us all some warning, although probably only a couple of months to consider as assume this will need to be voted for at the AGM?

Consolidation does not change the proportion of the company you own. In theory, the SP should increase by the same multiplier as the divisor of the number of shares.

So, true, it does open the door for lower SP, but the Board's thinking is they have been casting pearls before swine for the last 2 years for no result on the ASX, whereas the NYSE can make a necklace ...

 

[Diogenese]

Do Australian super companies let you invest in overseas companies or is everyone fxcked on that front.
I like the idea but tricky.
Thinking they have something up their sleeve before we go.

Antinio Vianna assured SHs that they will continue to be able to buy, hold, or sell, but didn't say how that will work.

 

[7für7]

I think its a good move to list in the US. I think it likely means that we are expecting to see an accelerated pick in news concerning engagements coming to fruition.
I think long term it will be very good for the company and its growth.. .. and our wealth.
Now we know why they organised the LDA funding.
Probably the reason Anil Mankar sold the shares? Not sure of the Tax position.
I am very positive about this.

Sure it’s positive but what will happen to the shares of so many retail investors? Somehow it’s not clear to me to be honest . Also because it’s the first time I face such a situation!

 

[DingoBorat]

I think its a good move to list in the US. I think it likely means that we are expecting to see an accelerated pick in news concerning engagements coming to fruition.
I think long term it will be very good for the company and its growth.. .. and our wealth.
Now we know why they organised the LDA funding.
Probably the reason Anil Mankar sold the shares? Not sure of the Tax position.
I am very positive about this.

You're very positive about your Future gains in the Company's success, being reduced by orders of magnitude, due to vastly reduced leverage?..

A Dual Listing, with the current float, is the only thing I'd be personally happy with here and that requires Time, for the Company to mature.

It's the difference between making some money and becoming incredibly nouveau riche.

 

[7für7]

Today we are all like “what’s happening? What’s going on.. “

Tomorrow morning they will drop a big announcement about a BILLION DOLLAR CONTRACT…..BAAAAAAAAAM

 

[Cardpro]

they can go to centrelink

I might line up soon

 

[Cardpro]

Today we are all like “what’s happening? What’s going on.. “

Tomorrow morning they will drop a big announcement about a BILLION DOLLAR CONTRACT…..BAAAAAAAAAM

Yes plz!!!!!!!!!!!

 

[DingoBorat]

Consolidation does not change the proportion of the company you own. In theory, the SP should increase by the same multiplier as the divisor of the number of shares.

So, true, it does open the door for lower SP, but the Board's thinking is they have been casting pearls before swine for the last 2 years for no result on the ASX, whereas the NYSE can make a necklace ...

"Consolidation does not change the proportion of the company you own. In theory, the SP should increase by the same multiplier as the divisor of the number of shares"

That statement is simply not True in practice Diogenese, due to things like Leverage, Supply and Demand and the fact that this would likely result in the issuance of new shares (for the necessary liquidity, if nothing else) with the proportion of "old shareholders" pushed to the side.

That's why Tony Dawe, is aware that anything other than a Dual Listing, with the current float, is a Betrayal of existing shareholders.

 

[schuey]

Today we are all like “what’s happening? What’s going on.. “

Tomorrow morning they will drop a big announcement about a BILLION DOLLAR CONTRACT…..BAAAAAAAAAM

I may be crazy but I'm thinking along the same lines......something big to come soon

 

[perceptron]

I have always wanted to own a technology stock in the US. Maybe a new thread should be created?