The $5.3 million was part of the agreed minimum draw down but as...

The $5.3 million was part of the agreed minimum draw down but as part of the extended agreement Brainchip was permitted to extend the date for drawing it down to this month.

The other thing to remember is that in seeking to draw down Brainchip do not pass ownership of the shares to LDA Capital only the custody under a bailment the terms of which are that they sell so many of those shares as is necessary to achieve the draw down amount.

So to explain by way of example if Brainchip ask to draw down $15 million and say the price of BRN ASX is $1.00 LDA would need to sell 15 million shares.

If however immediately after they receive the 15 million shares the price of one BRNASX share goes to $15 million they can only sell one of the 15 million shares and Brainchip is entitled to ask that the remaining 14,999,999 shares be returned.

I have deliberately simplified these examples and I do understand about the average price etc; but the point is Brainchip and shareholders are rewarded in this agreement when it takes place during a rising market but LDA gets exactly the same commission 10% of $15 million.

LDA capital are really not much different than a stock broker selling shares for a client and receiving a 10 percent commission of the sale price.

The better LDA Capital does at getting a good price however the more likely it is that Brainchip will keep using them.

My opinion only DYOR
FF

AKIDA BALLISTA