- AI tech company BrainChip (BRN) has completed a $3.12 million placement
- Funds will support ongoing costs and the commercialisation of the company’s Akida technology
- BrainChip and its partner, Socionext, are developing Akida to provide an artificial intelligence network processor for various systems and technologies
- The placement has occurred at a strategic time for the company as it has recently put cost cutting measures in place in response to COVID-19
- BrainChip is down 4.65 per cent and shares are trading for 4.1 cents each
AI tech company BrainChip (BRN) has completed a placement of 103.96 million fully paid ordinary shares which raised $3.12 million.
The placement funds will support ongoing operational costs and the commercialisation of BrainChip’s products.
In particular, BrainChip, and its Japan-based partner Socionext, is prioritising the rollout of the Akida technology.
Akida is BrainChip’s neural network processor. It is designed to provide an ultra-low-power Edge artificial intelligence (AI) network processor for vision, audio and smart transducer applications.
Edge devices can include laptops, phones, sensors, medical devices, and more.
To tighten its focus on commercialising Akida during the COVID-19 pandemic, BrainChip is continuing cost reduction measures such as cutting nonessential services and facilities, restricted travel and postponing new hires.
“While we feel positive about our product development drive and efforts to commercialise Akida IP, we are going through unprecedented and extraordinary times with a high degree of uncertainty as far as the global economy and equity markets are concerned,” President and CEO Louis DiNardo said.
“The Board felt it was in the best interest of our shareholders and the company to strengthen our balance sheet with this fund raise, along with our cost reduction measures, as we continue to drive Akida’s commercialisation,” he added.
Currently, BrainChip and Socionext are pursuing global customers for the Akida Intellectual Property (IP). Applications for the IP include automotive, smart sensors, IoT and smart home for vision, audio and physical data analytics in edge applications.
As announced on April 8, the companies are in the development stages of software and supporting hardware for Akida. These are expected to be completed when engineering samples are received in quarter three 2020.
BrainChip is down 4.65 per cent and shares are trading for 4.1 cents each at 11:16 am AEST.