The share price of Brainchip Holdings Ltd (ASX: BRN) has fallen 4% in response to a market update.
The advanced neural networking processor company went into a trading halt yesterday and today it informed the market why it did so.
BrainChip will receive AU$520,000 in gross proceeds in exchange for the release of 10 million Collateral Shares which were previously issued in accordance with the Convertible Note Agreement which was announced seven months ago in June 2019.
The company will receive the proceeds within two business days. BrainChip said that no new shares are issued as a result of this transaction.
The balance of debt remaining on the note is US$990,000 and there are 20 million remaining collateral shares to be returned to the company (or otherwise dispositioned).
BrainChip said it will make any further market updates when necessary in accordance with its continuous disclosure requirement.
