Aziana Limited (ASX:AZK) is currently in the process of acquiring artificial intelligence company BrainChip Inc, which has developed a hardware-only neural computing technology.
The company has been granted a voluntary suspension to allow further time for the completion of due diligence relating to the acquisition.
It expects to announce the outcome of the due diligence on or before Friday, 10th April 2015.
Aziana had in mid-March secured the exclusive option to acquire BrainChip by paying a fully refundable option fee of $400,000.
This option fee was funded in part by a $250,000 loan from major shareholder Metals X (ASX:MLX), which has a 13.73% direct interest in Aziana.
The loan is repayable 180 days from 17th March 2015 with interest payable of 12% per annum.
Metals X may, after 150 days from 17th March 2015, elect to receive repayment of the loan through the issue of fully paid ordinary shares in the capital of Aziana, instead of cash, to be calculated on the lower of:
- 2 cents per share; and
- The VWAP of the shares for five ASX trading days prior to the repayment date noted above.
Aziana has also entered into a security deed granting Metals X security over the assets of Aziana. The company has secured an ASX waiver in relation to this.
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