BRN

2.22%

22.0¢ brainchip holdings ltd

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Cand2it

31 Posts.

75

28/01/21

10:26

Post #: 50495787
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Originally posted by Fact Finder: ↑

Hi Cand2it

Welcome to this forum.

This is the simple answer to your question. The options that are being referred to are the options paid to LDA Capital as part of the consideration for Brainchip having received in effect a line of credit which has now been extended to $45 million dollars should it be required.

These options being consideration or a payment were always likely to be once converted to shares by LDA Capital converted into cash by being sold on market. Thus the sale of these converted options on market was creating artificial liquidity on the sell side and acting as a break on normal demand for Brainchip shares.

There were originally 75 million of these options which were broken into two lots one lot of 37.5 million which had an exercise price of 15 cents and the other lot of 37.5 million which had an exercise price of 20 cents so that their average exercise price was 17.5 cents which was the actual market price of Brainchip shares at the time. The exercise price was paid to Brainchip so while the exercise had a negative effect on liquidity it added funds to Brainchip's bottom line.

So with this final exercise of the remaining 2 million odd options the market for Brainchip shares will be solely a product of normal supply and demand forces once they are sold.

As Brainchip has a significant long term investor base who are not actively trading its shares the volume of shares available should remain fairly low and everything else being equal as positive announcements are made to the market those that might wish to become shareholders will have to compete for what will be an increasingly small pool of available shares unaffected by an artificial level of supply.

I trust this is of assistance.
FF.

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Thank you very much FactFinder this was truly very informative and helpfull, much appreciated thank you!

BRN Price at posting: 58.0¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 22.0¢		Change -0.005(2.22%)		Mkt cap ! $408.3M

Open	High	Low	Value	Volume
22.5¢	22.5¢	21.8¢	$1.107M	5.019M

Buyers (Bids)

No.	Vol.	Price($)
6	110458	22.0¢

Sellers (Offers)

Price($)	Vol.	No.
22.5¢	355185	24

View Market Depth

No.	Vol.	Price($)
4	62894	0.220
14	327682	0.215
18	373513	0.210
22	841623	0.205
58	1855008	0.200

Price($)	Vol.	No.
0.225	153131	14
0.230	555942	14
0.235	384447	13
0.240	378618	12
0.245	587269	12

Last trade - 16.10pm 28/06/2024 (20 minute delay)

BRN (ASX) Chart

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