BrainChip Holdings (ASX:BRN) said it will raise AU$35 million via the issue of 200 million shares at AU$0.175 per share to professional and sophisticated investors, according to a Monday filing with the Australian bourse.

The offer price represents an 11.8% discount to the company's ten-day volume weighted average price, the filing said.

The company also invited eligible shareholders to raise a maximum of AU$2 million via a share purchase plan (SPP) at the same price, the filing added.

The funds will be used to commercialize the company's technology, fund research, advance design and implementation of chip architecture, and for working capital, the company said.

Shares of the company fell 5% in recent Monday trade.