AFR: Audio Pixels Holdings in $10m cash call

Listed loudspeaker developer Audio Pixels Holdings was asking investors for a $10 million cash injection on Monday morning.

Audio Pixels’ investors were asked to tip in to help the company with development, marketing, working capital and repayment of debt, according to the term sheet sent to investors.

The company had about half a million in cash at June 30, and $4.3 million debt at August 8, in comparison with its $487 million market capitalisation.

It’s a small cap that investors know well. It has told investors it has the only digital reproduction chip available to replace existing analogue technology for loudspeakers, and that its solution is smaller and 10 times more power efficient.

However, it has been a long wait for investors to see a demonstration of the fabricated chip.

Late last month, Audio Pixels said it had received two batches of Gen-1 MEMS wafers back from fabrication and would run a $10 million capital raising after its chip was demonstration-ready. It has a fabrication agreement with semiconductor company EarthMountain (Shanghai) Intelligent Technology Co.

The offer was priced at $14 a share, a 17.5 per cent discount to the last close and 15.3 per cent discount to the five-day volume weighted average price.

Potential investors were told EarthMountain would tip in $4.3 million and Audio Pixels Holdings’ largest shareholder and Fred Bart would invest $2 million after shareholder approval.

Bart’s 4F Investments has also made about $3.2 million in unsecured loans to Audio Pixels at 6 per cent per annum, that were repayable at September 30 or the capital raising’s completion, according to the company’s July 29 update.

Petra Capital was the sole lead manager and called for bids by 2pm, Tuesday.

Extract Source: The Australian Financial Review