2020 BRN Discussion, page-25240

Hi marc

I will just pull you up on one thing which is investors/capital providers only being prepared to invest on the basis of a 15 cent valuation.

In 2018/19 the CEO and Board of Brainchip became aware that shareholders were becoming increasingly uncomfortable with the lack of income and dilution caused by capital raises necessary to continue operations.

In consequence the CEO publicly stated the company was reducing expenditure across all areas except the key area of bringing AKIDA to life, divesting the company of sales personnel and exploring ways in which to raise capital that would minimise dilution and maximise shareholder value.

A shared wafer was one such initiative as well as choosing the least expensive chip size which would still appeal to the targeted markets being 28nm.

As part of this commitment raising only such capital as was absolutely necessary was also adopted and so the amount raised by BRN from LDA Capital was because this was how much was needed not because LDA Capital would not advance a greater amount in fact once Brainchip confirmed it was definitely going to be mass producing the AKD1000 chip in 2021 they had no difficulty in extending the potential available credit by almost double to $45 million dollars but on terms which allows Brainchip to take as little as a further $9 million.

Clearly this approach ensures that there is plenty of capital available but it also allows dilution to be kept at a minimum as sales are made and revenue is received.

The differences between Graphcore and Brainchip have been covered extensively in multiple posts but suffice to say they are entirely different technologies and not in competition.

Intel is Brainchip’s competitor and it admits to being 5 years from commercialising its Ai and as I pointed out in a post yesterday under uiux’s thread ‘All roads lead to JAST” they know Brainchip has something they need.

My opinion only DYOR.