The Brainchip Holdings Ltd (ASX: BRN) share price won’t be moving for the rest of the day after being placed into a trading halt at the company’s request.
Why are the shares in trading halt?
This morning Brainchip requested an immediate trading halt pending an anticipated announcement of a ‘material customer contract’.
Shares in the company had already traded up 3.17% today before the trading halt commenced.
This comes after a whirlwind six months for the Brainchip share price, having gone from 8 cents a share at the end of June to 97 cents in September. Shares were changing hands for 32.5 cents today before being halted.
What does Brainchip Holdings do?
Brainchip Holdings focuses primarily on software and hardware development of edge-based artificial intelligence (AI) on its low powered processing chips.
The company has several software and hardware products in its arsenal. These range from software that can assist law enforcement and intelligence organisations in identifying people in footage through facial recognition, through to hardware such as the Akida Neuromorphic System-on-Chip (NSoC), which is geared towards IoT (Internet of Things) applications.
It has been a busy last few months for the AI company. In September Brainchip announced a collaboration with VORAGO Technologies on the Akida Early Access Program to develop a radiation-hardened neuromorphic processor that is suitable for spaceflight and aerospace applications.
In late September Brainchip announced the establishment of a software development centre in Hyderabad India, with the purpose of developing software and firmware for the Akida NSoC.
In December, the market was told that the company had been providing shipments of evaluation boards to Early Access Partners for manufacturers, such The Ford Motor Company, Valeo, Vorago Technologies, and National Aeronautics and Space Administration, to assess.
When will Brainchip shares resume trading?
In its announcement to the market today, the company stated that the trading halt is to remain in place until the earlier of the announcement regarding the ‘material customer contract’ being released, or the commencement of trading on Thursday 24 December 2020.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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