BRC: Strategic Investment at 35% Premium
Brain Resource has today announced a $10m strategic investment from Och Ziff, an investment company with over $29 billion under management.
The key investment highlights are:
Convertible price of $0.405 (35% premium to last traded price)
5 year term
~210% dilution
Och Ziff will nominate a CEO to lead the companies US operations and expansion
Additionally, tucked away on page 8 of the announcement is the following:
BRC has granted the Subscribers an option to fund AUD$5,000,000 of any proposal relating to an Attention Deficit Hyperactivity Disorder Project that is currently being developed
This indicates the total investment could become closer to $15m and that the company is developing an interesting proposal for ADHD to complement their planned Depression FDA approval.
I see exciting times ahead as the company now has the funds to aggressively promote their products in the US and rapidly move towards FDA approval for depression markers. They have achieved this while minimising shareholder dilution by organising funding at a significant premium to the share price. As a side benefit the company will have the cash to weather any global down turn.
Warning: For those considering purchasing BRC, be aware that it is a very illiquid stock.