Metals X backs Aziana raising

Aziana has received firm commitments from its two largest shareholders for a $4 million capital raising it is undertaking as part of its reverse takeover of US-based biotech firm BrainChip.

See coverage on Aziana's proposed reverse takeover of BrainChip here.

Aziana’s largest shareholder, Perth-based gold miner Metals X, has agreed to underwrite $3.5 million of the capital raising, while its second-largest shareholder, the UK-based D’Yquem Investments, has signed up for $500,000.

Metals X holds a 13.7 per cent stake in Aziana.

The placement of the shares will be priced at the lower of 20 cents a share and the 10-day volume weighted average price in the 10 days prior to shareholder approval of the company’s $9.4 million acquisition of BrainChip.

The prospectus will be issued in about six weeks.

Aziana said it had also received strong interest for the capital raising from institutional investors.

The underwritten placement will satisfy Aziana’s requirement to complete a capital raising as part of the acquisition.

“We are very happy to receive support from our two largest shareholders in assisting us to fulfil the fiscal requirements to complete the BrainChip acquisition,” Aziana chief executive Neil Rinaldi said.

The BrainChip team includes chief technology officer Peter Van Der Made, who spent time at the Innovation Centre of WA incubator in 2012 to develop the business.

Commenting on its support for the backdoor listing, Metals X said BrainChip’s patented Spiking Neuron Adaptive Processor technology was ground-breaking and capable of revolutionising advances in artificial intelligence and computer/digitally-based learning technologies.

Metals X shares were 2.3 per cent higher to $1.55 each, while Aziana shares lost 2.2 per cent to 21.5 cents each at 2:20pm.