Ah the Pros done well again,Per the brothers and co CEO at the...

Ah the Pros done well again,

Per the brothers and co CEO at the Mot** Foo**

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 10% to 18.5 cents. Investors have been hitting the sell button after the semiconductor company diluted shareholders further with another capital raising. However, it seems that investment banks and institutional investors believe Brainchip isn't investment grade. As a result, the company is having to raise the funds through another Put Option Agreement with LDA Capital. This agreement essentially sees LDA Capital sell newly created shares on-market on behalf of the company instead of holding onto them.

*** That's today and not DEC 4th 2024
and there is a flash of the past...

Brainchip and LDA Capital

According to the AFR, Brainchip's financing arrangement with LDA Capital allows it to access between $20 million to $45 million across a one-year period. This arrangement reportedly started in August 2020.

In return, LDA Capital is paid fees and provided 100 million options, leading it to bank tens of millions of dollars, the AFR reported.

LDA Capital decided to exercise 75 million options in January 2021. Half were exercised at an issue price of 15 cents a share and the other half at 20 cents per share.

The AFR also noted Brainchip had requested an extension to draw the minimum amount under the facility, enabling it to access a further $35 million.