Ann: Appendix 4C and Quarterly Activities Report, page-315

The advantage of the ADR's is not one that you as an ordinary retail shareholder investor would consider in deciding to purchase.

ADR's give complete anonymity to the accumulating party. The only notices that are filed are those by the Bank of New York Mellon as the depository holder. As a result a large institution can over time accumulate ADR's and go over the 5% and not need to disclose anything to the market. Once it goes above 5% it is the Bank of New York Mellon that files the substantial holder notice and the market remains none the wiser as to the institutions interest in Brainchip.

I do not like this as another company I held shares in on the ASX went the ADR route and despite my contacts in the US it took a lot of work to find out who was behind the ADR purchases and when I did it caused me to sell out my holdings. The circumstances that applied there do not apply here by any stretch of the imagination but it was the opaque nature that allowed a less than ethical director to play mates games.

So coming back to the original point if it was made known that a fund like say ARK was buying shares in Brainchip most retail shareholders would probably see that as a signal to hold and the price of Brainchip shares would likely rise and ARK would have to pay more to accumulate. If it wanted to accumulate without this happening (and I know this is not its business model) then the ADR's provide this distinct advantage.

My opinion only DYOR
FF

AKIDA BALLISTA