BrainChip Holdings Ltd (ASX: BRN), the world’s first commercial producer of neuromorphic artificial intelligence technology, today announced the expiration of its Put Option Agreement with LDA Capital Limited on 30 June 2026. BrainChip specialises in Edge AI on-chip processing and learning with its Akida™ processor, designed to mimic the human brain for efficient data processing. The Agreement, which provided BrainChip with a flexible capital management facility, has now concluded, with all associated rights and obligations ceasing, pending final settlement arrangements.
The Company confirmed that an outstanding failure fee obligation of A$1.0 million, as stipulated under the Agreement, has been fully satisfied. This settlement was achieved through the utilisation of collateral shares previously held by LDA. Approximately 6.96 million BrainChip shares were sold from these collateral holdings, generating gross proceeds of A$1.0 million, which were then applied in full to discharge the failure fee obligation. This transaction fully resolves BrainChip’s obligations related to the failure fee and brings the commercial arrangements under the Agreement to a close.
Following the sale for the failure fee, approximately 6.0 million collateral shares remain held by LDA. BrainChip was advised on 23 July 2026 that LDA intends to liquidate these remaining shares in an orderly manner over the coming several weeks. This process is expected to be conducted in a way that seeks to minimise market disruption. Upon completion of the liquidation, the net proceeds from the sale of these remaining collateral shares will be remitted to BrainChip, after deducting LDA’s standard 8.5% fee. The Company anticipates providing a market update once the disposal of these shares is complete and the associated net proceeds are received.
The expiration of the LDA Put Option Agreement marks the conclusion of this financing facility and its associated collateral arrangements. BrainChip believes that resolving the remaining obligations through the existing collateral shares has enabled a clean and efficient conclusion to the Agreement without requiring the use of the Company’s cash resources. All matters relating to the facility are expected to be fully concluded upon completion of the remaining share sales and remittance of the net proceeds.
