2022 BRN Discussion, page-2660

Those two sales totaling 12m shares were "crossing" trades. They were traded today and were reported by the broker after market close. Essentially they are both an off-market transfer at the market price ($1.50) allowable under the ASX trading rules. Often brokers will organise big trades to occur off market at the closing price if they have a buyer or a seller that is looking to transact a large volume of shares and if the broker has enough sellers to match the buyer or buyers to match the seller, depending on the circumstances. Sometimes these shares are just being shuffled around between large shareholders under the same nominee account.

Who/what is going on with these two trades? I don't know. The only other relevant info, of course, is that today Brainchip made a capital call on the put option holder, LDA Capital, and issued them 15m shares. Maybe LDA Capital had to offload some of those shares to cover the cost? Maybe the didn't want to be left holding the shares at the current market price and instructed their broker to offload them at $1.50 limit?

I don't quite understand how those put option shares are priced. I didn't know they existed until the announcement was made. Something about 90% of VWAP? What was the VWAP this morning. I only know that at close today it is $1.63. Maybe it was around $1.50 this morning. It's turned out to be a fortuitous arrangement for BRN. I can imagine that LDA Capital might be thinking there is too much short term downside risk in the current share price to be holding shares they purchased at 90% VWAP and maybe they will want to flip them.

Personally, I think BRN is going to retrace from here. I only jumped on recently and had only held for a week or two before selling yesterday. I can understand why long term holders might want to hold firm, but I am looking for a re-entry at a lower price myself.