Metals X backs Aziana's tech play

UPDATE 2.45pm: Metals X has backed Aziana’s reinvention as a tech play by underwriting the company's plan to fund a reverse takeover of BrainChip.

The former explorer is seeking to raise $4 million to affect a backdoor listing of BrainChip, which is developing technology that aims to mimic the processes of the human brain.

Metals X, a 13.73 per cent shareholder in Aziana from its exploring days, will underwrite the capital raising to the tune of $3.5 million while another significant shareholder, UK-based D’Yquem Investments will underwrite the balance.

Metals X said the underwriting agreements effectively removed any capital risk associated with the BrainChip acquisition for Aziana.

“Metals X believes that BrainChip’s patented SNAP (Spiking Neuron Adaptive Processor) technology is ground-breaking and capable of revolutionising advances in artificial intelligence and computer/digitally based learning technologies,” the company said in a statement.

Aziana executive director and chief executive Neil Rinaldi said the company was happy to have received the support of its two biggest shareholders in to fulfil the fiscal requirements to complete the BrainChip transaction.

“We have also been overwhelmed by the show of support from the funds we met on our recent roadshow (in North America, Asia and Australia), which illustrates their firm belief in BrainChip’s technology,” he said.

“The BrainChip team has already achieved its first milestone under the acquisition agreement.

“The recent announcement of this presented not only a strong visual demonstration of the key attributes of the technology, but a significant commercial milestone that demonstrates application as the company advances its goal of generating licensing revenue within 12 months of funding.”

The transaction is still subject to shareholder approval expected at a meeting late next month.

BrainChip's patented technology was developed by inventor Peter van der Made, who has been working on it since 2007.

Aziana shares were steady off half a cent to 21.5 cents at the close while Metals X shares were up 3.5 cents, or 2.31 per cent, to $1.55.