- AI technology creator BrainChip (BRN) has amended its $29 million put option agreement (POA) with LDA Capital
- Under the change, BrainChip and the U.S. based investment group have agreed the tech stock has fulfilled its obligations under the original agreement by drawing down $10 million
- Additionally, LDA Capital has asked to extend the financial offering and increase its available funding to BRN to $45 million
- In return, BrainChip has increased its minimum obligation to $20 million, including $11 million which has already been drawn down
- The tech company’s CEO said the capital may be drawn upon to help BrainChip advance its Akida technology
- Shares in BrainChip have opened trading for 39 cents, up 4 per cent
BrainChip (BRN) has amended its put option agreement (POA) with LDA Capital by further extending the deal.
Under the original $29 million POA signed in August, both companies had the option to extend the one-year agreement for an additional 12 months.
BrainChip and LDA have now agreed to extend the agreement after the tech stock fulfilled its original obligations by drawing down more than $10 million.
The U.S.-based investment group will stay linked to BRN via the financial offering for another year — and will increase the available funding to $45 million.
In return, BrainChip has increased its obligation to LDA to $20 million, including the $11 million which has already been drawn upon.
“We are pleased with the LDA Capital relationship and look forward to their continued support of BrainChip,” BrainChip CEO Louis DiNardo commented.
The BRN leader also said the additional capital may be drawn upon to help BrainChip advance its Akida technology.
“Having the capital capacity in place, if and when the company needs it, is reassuring as we move to the commercialisation of the Akida technology and our groundbreaking entrance into the large and growing AI Edge market,” he said.
Shares in BrainChip have opened the week trading for 39 cents each, up 4 per cent at 10:39 am AEDT.