What is the Third Amendment to BrainChip's Financial Agreement with LDA Capital?

BrainChip Secures Capital Boost with Put Option Agreement Amendment

Sydney, January 3, 2024 - In a significant move to bolster its financial position, BrainChip Holdings Ltd, a leader in neuromorphic artificial intelligence technology, has announced a strategic amendment to its existing financial agreement with LDA Capital LLC. This move is set to provide the company with a substantial capital influx and enhance its capability to invest in growth initiatives.

BrainChip's Strategic Financial Maneuver

BrainChip Holdings Ltd has entered into its third amendment with LDA Capital LLC concerning their Put Option Agreement (POA). This amendment extends the company’s access to capital until December 2024, ensuring a steady flow of funding for its upcoming projects and operational needs.

Commitment to Minimum Drawdown

Under the new terms, BrainChip is committed to a Minimum Drawdown of $12 million AUD by the end of 2024. This follows the company’s ongoing efforts to draw down the remaining $2. 7 million AUD, a process expected to conclude in the first quarter of 2024.

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Issuance of Collateral Shares

The agreement stipulates the issuance of 40 million Collateral Shares by BrainChip, to be executed by either the next Capital Call or no later than 31 March 2024. The issuance is contingent on the company's available placement capacity under the Company’s Listing Rule 7. 1.

Pricing Formula Unchanged

The pricing formula, set at 91. 5% of the daily Volume Weighted Average Price, remains unchanged under this amendment. Additionally, no extra fees will be incurred due to this amendment.

Company’s Outlook and CEO’s Statement

Sean Hehir, the CEO of BrainChip, expressed optimism about the company’s future. He highlighted the need for rapid investment in growth, particularly in light of the company's initiatives such as the 2nd generation Akida™ products, the Edge Box initiative, and strategic partnerships. Hehir emphasized the importance of this financial agreement in maintaining a competitive edge in a challenging market.

Leading in Edge AI Technology

BrainChip Holdings Ltd is renowned for its pioneering work in edge AI on-chip processing and learning. Its flagship product, the Akida™ neuromorphic processor, represents a breakthrough in AI technology, mimicking human brain functionality for efficient and precise data processing.

Focus on Essential AI

The company focuses on Essential AI, emphasizing local machine learning on the chip, which enhances data privacy and security while reducing latency. This approach is particularly applicable in various real-world scenarios, including connected cars, consumer electronics, and industrial IoT.

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