By Joe Hoppe
Seeing Machines Ltd. shares rose Thursday after it said it has agreed to collaborate with Magna International Inc., with the latter providing an investment of up to $65 million through an exclusivity arrangement and convertible note.
Shares at 0708 GMT were up 0.71 pence, or 12% at 6.51 pence.
The transport technology company said that it will collaborate with Magna to develop a driver-and-occupant monitoring system business targeting the interior rear-view mirror of vehicles, with the agreement lasting until the end of June 2025.
In return, Magna has agreed to invest $65 million into Seeing Machines through an exclusivity arrangement payment of $17.5 million and up to $47.5 million through a convertible note, maturing in October 2026.
Of the $17.5 million, $10 million is payable upfront with the remainder over the following two years.
The convertible note can be drawn in two tranches over the four years, and is convertible into a maximum of 349.7 million shares at 11 pence a share. When added to its existing share capital, the new shares will represent a 9.9% dilution of Seeing Machines’ share capital.
“Seeing Machines is now funded to deliver on our current business plan and we look forward to focusing on achieving significant growth across each of our target transport sectors,” Chief Executive Paul McGlone said.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
October 06, 2022 03:30 ET (07:30 GMT)
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Read More: Seeing Machines to Collaborate With Magna International; Shares Rise