BrainChip Holdings (ASX:BRN) Announces Fourth Amendment to LDA Put Option Agreement
Funding Agreement Extension
BrainChip Holdings Ltd (ASX: BRN) has announced an extension of its Put Option Agreement (POA) with LDA Group, securing additional funding to support its operations. The updated agreement increases the total funding available by AUD $37 million to AUD $140 million, with the drawn amount to date reaching approximately AUD $68 million since the agreement commenced in August 2020.
Under the fourth amendment, BrainChip will access an additional Minimum Drawdown Amount of AUD $20 million by June 30, 2026. The company will issue 40 million Collateral Shares either at the next Capital Call or by June 30, 2025, subject to available placement capacity. LDA’s purchase price will be set at 91.5% of the Volume Weighted Average Price of shares sold during the pricing period.
Investment in Product Development
The capital generated from this amendment aims to bolster the development of BrainChip’s Akida 2.0 products and expand its TENNs model portfolio to enhance customer engagement. Sean Hehir, CEO of BrainChip, remarked, “With the growing momentum of our 2nd generation AkidaTM products, we recognise the need to accelerate investments to drive growth.” He added that this funding will enhance the company’s competitive edge against well-capitalised peers while allowing for prudent cash management.
This announcement is approved by the BrainChip Board of Directors.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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