2021 BRN Discussion, page-13479

The strict theory or fiction behind why a large institutional investor is useful to have on your register goes like this:

1. Large institutional investors have an information advantage. They are thought to have the resources and personnel with the necessary expertise to access information of a type and at a level that makes their investment decisions such as to inspire market confidence;

2. This confidence leads to other institutional investors to consider investing and also influences retail investors in the same positive manner and as a result it can increase overall market capital and create greater stability;

3. Additionally such large institutional investors can be sources of capital or provide a level of confidence that makes raising capital easier and on better terms.

So these are the reasons advanced however I have a more cynical view.

Brainchip has 37,000 retail shareholders. We are high maintenance, we vote down remuneration motions, we cost the company money in terms of sending out Annual Reports etc; we even created a need for a full time investor relations employee.

We cost the company more with their registry service provider because they have so much more work with 37,000 on the register.

Some retail even send rude abusive emails.

So in my cynical reality getting rid of large numbers of retail shareholders and replacing them with a few large institutional investors makes everyone’s life easier.

As I say long term retail investors are expendable for sound financial reasons all round.

My opinion only DYOR
FF

AKIDA Ballista