BRN (ASX) Ann: Capital Call with LDA

Originally posted by stan9614 ↑

Many Thanks Dolci and Doz
Very helpful explanation which helped me to understand better.

It looked back the first Financing Ann back in 13/08/2020

Now the 1st capital call was for 8,750,000. looking at the broker data record, LDA seems to have sold exactly 8,750,000 shares on market + the fund need to pay the first commitment fee. From the screenshot below you can see between 16/08/2021 and 31/08/2021, there are 9 lots of 875,000 + 1 lot of 1,380,000. it looks like on 25/08/2021 LDA sold 875,000+505,000. therefore makes it roughly 10 lots of 875,000 (exactly the total amount of the capital call) + the commitment fee to complete this 1st capital call.

So the number in broker report makes sense now

now the amendment to finance instrument announcement issued on 26/10/2020 statement that:

This confirms that
1, $9.2m drawn down required by 22/10/2021 is the last drawn down Brainchip is obliged to do if the company believe it has enough funding for now.

2, about half of this $9.2m drawn down has already been done by 31/08/2021.

According to Doz's Email extract, "As you noted below, we must draw down a total of $9.2M by 22 October to fulfil our obligation so we will need to do one more drawdown or negotiate an extension to the agreement. As of today, we intend to carry through with the original plan." Looks like it is very likely that:
1, the company will announce another capital call notice by 22/10/2021, and it seems LDA are not planning to extend the minimum draw down as it has already started selling again on 05/10/2021 (1 million share sold by FinClear on 5/10/2021)

2, Conservatively assume the average sold price will be 40c, the remaining possible selling by LDA between 06/10/2021 and 22/10/2021 is roughly no more than ($9.2m - $4.8m) / 0.4= 11 million shares

Please correct me if my calculation is not right. But my calculation is roughly correct, then in the 13 trading days between 06/10/2021 and 22/10/2021, on average about 900k share will be sold by LDA on market everyday.

If that is the case, then I think if without an price sensitive annoucement, selling from LDA will still have a modest impact in share price in the next 2 weeks. However, after that I guess our party should start as we getting close toward update on chip test and shipment by end of Q4.

By the way, Bridges (ex CEO, Louis) has stopped selling since 30/09/2021, and for the first time in a long period, Bridges bought 839,000 share without selling any on 05/10/2021. Is it because Louis started buying back some shares? I guess we will find out in the next few updates

Bridges bought in total only 1.4m share between 17/03/2021 and 04/10/2021

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I tip my hat to you Stan for your efforts that you have made so you have your own understanding of this made more understandable. I too, now, have more of an understanding (Sorry, I hope that makes sense).

Thank you for your highlights and again your efforts that have made things more digestable for those of us that find it hard to keep a grasp on the teknalogical bits of this LDA thingy .

Pantene