Brain Resource Secures $10m Fundraising

Brain Resource Limited (ASX: BRC, “BRC” or the “Company”) is pleased to announce that the Company has secured investment by way of a placement for $10 million to fund the Company’s aggressive growth plans in the USA.

The capital raise was successfully completed by Joint Lead Managers Bell Potter Securities and Gleneagle Securities. The investment attracted strong support from high quality Australian Institutional investors and was led by commitments from US based high net worth individuals and the Company’s new management team.

The fund raising is conditional on shareholder approval of the investment pursuant to ASX Listing Rule 7.1 and a capital restructure, whereby existing convertible securities will convert to ordinary BRC shares simultaneously with the approval of the placement of the 166,889,186 shares at $0.06 to raise $10,013,351. Each placement share will include a 1 for 3 attaching option, with an exercise price of $0.08 and a one year expiry date from the date of issue, i.e. at total of 55,629,729 options. The conversion will not only eliminate outstanding debt but also removes the security interest held over the Company’s assets. The conversion of $14,000,000 of convertible securities involves as consideration the issue of 175,000,000 shares at $0.08 per share, together with 50,000,000 options with an exercise price of $0.10 and a five year expiry date from the date of issue. The conversion requires shareholder approval for the purposes of Item 7 of section 611 of the Corporations Act.

The capital raising was conducted at a 3.2% discount to the last close and an 8.7% discount to the 15-day VWAP. The Company will consider conducting a small entitlement offer to enable shareholders that were not invited to participate in the placement the opportunity to invest on equivalent terms.

Mr. Louis Gagnon, Chief Executive Officer stated “that the investor support in this capital raising is reflective of growing investor, consumer and health sector interest in brain health. The funds raised will be used to drive an aggressive growth strategy including the recruitment and deployment of software engineering and sales resources to aggressively scale up the Company’s core product whilst servicing existing channel partners to grow revenue and market share”.

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s