2021 - The Year of Akida, page-312

At some point yesterday I read a post and thought I should clarify for the benefit of new shareholders and others the present situation regarding LDA Capital and the financing agreement.

As we know BRN extended the agreement to permit a draw down by way of put option to a total of $45 million dollars.

Under that extended agreement BRN is obligated in the next year to draw down a minimum further amount by put option of $9 million dollars regardless of how much cash it receives from customers such as Renesas.

The present balance sheet of the company being so healthy will allow this draw down to occur at a time chosen by the company which best suits the company and its shareholders.

The higher BRN share price at the time of the draw down the fewer shares issued under the put option so at a share price of say $1.10 only 9 million shares or less required to add the $9 million to the cash reserves of BRN.

Not something which should cause any concern but did not want holders to be surprised when it occurs.