BrainChip Holdings Ltd Announces A$25m Equity Capital Raising to Fuel AI Innovations
BRN (BRN) Share Update July 2024 Thursday 25th
BrainChip Holdings Ltd Announces A$25m Equity Capital Raising
BrainChip Holdings Ltd (ASX: BRN) has announced a significant equity capital raising of up to A$25 million to support the commercialization of its Akida 2.0 technology and the development of its new TENNs algorithm.
Instant Summary:
- A$25 million equity capital raising announced.
- A$20 million from institutional placement and A$2 million from existing securities sale.
- Non-underwritten share purchase plan (SPP) to raise up to A$3 million.
- Funds to support Akida 2.0 technology and TENNs algorithm development.
- Steven Brightfield appointed as Chief Marketing Officer.
- Newly reconstituted Scientific Advisory Board with key appointments.
Equity Capital Raising Details
BrainChip Holdings Ltd has announced an equity capital raising of up to A$25 million. The capital raising includes a fully underwritten institutional placement to professional and sophisticated investors to raise approximately A$20 million, a fully underwritten sale of existing securities from LDA Capital equating to approximately A$2 million, and a non-underwritten share purchase plan (SPP) to raise up to an additional A$3 million.
The Placement, Existing Share Sale, and SPP will be conducted at a price of A$0.193 per share, representing a 3.5% discount to the last close of A$0.20 per share on 22 July 2024, a 4.5% discount to the 5-day VWAP of A$0.2022 per share up to and including 22 July 2024, and a 4.0% discount to the 10-day VWAP of A$0.2011 per share up to and including 22 July 2024.
Use of Funds
The proceeds from the equity capital raising will be used to support the commercialization of BrainChip's Akida 2.0 technology and the development of the TENNs algorithm. These advancements represent the next evolution in BrainChip's product portfolio and build on its existing leadership in the field of neuromorphic technology.
Put Option Agreement Fulfillment
BrainChip has also fulfilled its current obligations under the 2020 Put Option Agreement with LDA Capital LLC through the payment of an Early Buyout Fee of $371,000. Although all obligations have been met, the agreement remains intact and available for additional capital raises until 31 December 2024.
Key Appointments
BrainChip has appointed Steven Brightfield as Chief Marketing Officer. Steven brings extensive experience from his previous role as Head of Marketing at SiMa.ai and holds a Bachelor of Science in Electrical Engineering from Purdue University. His primary focus will be on developing a marketing strategy for the new TENNs product and integrating it with the Akida technology platform.
Additionally, BrainChip has reconstituted its Scientific Advisory Board (SAB) with the appointments of Dr. Jason Eshraghian and Dr. André Van Schaik. These experts will provide independent advice and expert consultation on the company's scientific and technical goals.
The equity capital raising is expected to have a positive impact on BrainChip's stock as it provides the necessary funds to advance its innovative technologies. The appointment of Steven Brightfield as CMO and the reconstitution of the SAB with esteemed experts further strengthen the company's strategic position.
Investor Reaction:
Investors have reacted positively to the announcement, appreciating the company's efforts to raise capital and support its technological advancements. Analysts have noted that the successful completion of the capital raising and the strategic appointments are likely to boost investor confidence.
Conclusion:
BrainChip's A$25 million equity capital raising marks a significant step towards the commercialization of its Akida 2.0 technology and the development of the TENNs algorithm. Investors should keep an eye on the company's progress and consider the potential long-term benefits of these advancements.