- Total Brain (TTB) enters into unsecured loan agreements totalling $1.8 million
- Lenders include a 19.9 per cent shareholder, several TTB executive and non-executive staff and an unrelated, third-party, non-professional lender
- The funds will be used to fulfil working capital requirements and serve as bridge financing as the company finalises a prior licensing transaction
- The five-month loan carries an interest rate of 12 per cent per annum
- Shares are up by 1.6 per cent to 32.5 cents each at 12:42 pm AEST
Total Brain (TTB) has entered into unsecured loan agreements totalling $1.8 million.
Based in San Francisco and Sydney, Total Brain is the developer of a self-monitoring and self-care platform of the same name, powered by a standardised brain database.
TTB has secured the above loans with a 19.9 per cent shareholder, Managing Director and CEO David Torrible, Non-Executive Director David Daglio, COO Matt Mund and an unrelated third-party, non-professional lender.
The funds will be used to fulfil general capital working requirements and serve as bridge financing as the company finalises a licensing transaction announced last month.
Accordingly, the unsecured loan will be provided over a period of five months at an interest rate of 12 per cent per annum.
The loan amount and accrued interest will be repayable in cash during the term at Total Brain’s discretion, with no pre-payment penalty, or otherwise at the end of the period.
Under the terms, in the event of a capital raise during the loan period, lenders will have the option to convert amounts owed into fully paid ordinary shares in the company at the price of the raise.
The company said its Total Brain platform had helped more than one million registered users scientifically measure and optimise their brain capacities and manage the risk of common mental conditions.
On Friday, Total Brain’s shares were trading 1.6 per cent higher at 32.5 cents at 12:42 pm AEST.