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Seeing Machines Ltd on Thursday said it has signed a deal with Magna International Inc, which includes a $65 million investment through an exclusivity arrangement and convertible note.
Seeing Machine is a Canberra, Australia-based advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety. Magna International is an Aurora, Canada-based parts manufacturer.
As part of an exclusive collaboration agreement, both companies will work together to co-market driver and occupant monitoring systems targeting the rearview mirror.
In return for Seeing Machines granting exclusivity to Magna for the mirror, Magna has agreed to invest $65.0 million via an exclusivity arrangement payment of $17.5 million and up to $47.5 million through a convertible note maturing in October 2026.
The convertible note, which can be drawn down in two tranches across the four-year term, has a conversion rate per ordinary share of 11.00 pence.
The first tranche, being $30.0 million, will be drawn at the closing with the remainder available until December 2024. The convertible note has an all-in yield of 8%, inclusive of fees.
Paul McGlone, chief executive officer said: ‘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.’
Sharath Reddy, Magna's senior vice president, added: ‘As driver monitor systems start to become more standard safety technology, we see a lot of potential to lead the change with our integrated driver and occupant solution, an industry-first when it hits the market.’
Seeing Machines shares were trading 11% higher at 6.42p each in London on Thursday afternoon.
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