Monthly Archives: September 2026

What does Magna want from Seeing Machines?

Posted on by
Reply

Seeing Machines’ decision to extend its convertible loan notes with Magna raises an intriguing question: how much does Magna actually want to nurture the relationship?

Magna is vastly larger than Seeing Machines, so it would be wrong to suggest that SEE’s debt is financially important to the group. But the relationship goes beyond lending money.

Magna originally provided Seeing Machines with up to US$47.5m of convertible financing while also entering into a strategic collaboration around integrating SEE’s driver and occupant monitoring technology into vehicles. Magna therefore has both a financial and potentially strategic interest in SEE’s success.

That relationship may now be becoming more valuable.

SEE’s automotive royalty revenues increased 135% to $33.9m in FY2026, while the number of vehicles produced under its programmes reached 4.5m, including 2.1m in the final quarter. The business is generating substantially more royalty income than when Magna originally invested.

So what might Magna offer?

Rather than simply demanding repayment or allowing an external lender to take over, Magna has agreed to extend the existing notes. It could potentially do so on revised terms, allowing SEE to repay from its growing royalty cash flows while preserving Magna’s conversion rights and strategic relationship.

We shouldn’t assume Magna will offer SEE a cheap deal. It is still a lender taking risk.

But there is an important change in the negotiating dynamics. SEE now has a rapidly growing automotive royalty stream, while Magna has demonstrated a willingness to extend the existing arrangement.

If Magna believes SEE’s value is increasing, it may have good reason to remain involved.

The next two months should therefore tell us something important: how vital a strategic asset is Seeing Machines to Magna?

The writer holds stock in Seeing Machines.

Seeing Machines: the refinancing delay is good news

Posted on by
1

At first glance, Seeing Machines’ (AIM: SEE) decision to extend its Magna convertible loan notes from October 4 to November 30 looks like another refinancing setback. I think investors should read it differently.

The key sentence in today’s RNS is that the existing Magna arrangement is preferable to the “presently proposed refinance debt package”. In other words, Seeing Machines has apparently been offered a refinancing package – but the terms are not attractive enough for management to accept it.

That is positive: the question is no longer whether SEE can refinance, but to what extent it can further improve the terms?

It also shows that Magna needs Seeing Machines as much as it needs Magna. Magna has agreed to extend the loan for almost two months rather than insist on repayment on October 4. The precise commercial considerations behind that decision aren’t known, but it suggests that maintaining the relationship has value for both sides.

The next eight weeks should materially strengthen SEE’s negotiating position. Automotive royalty revenues accelerated dramatically in the second half of FY2026, with Q4 production reaching 2.1m vehicles, while $25.3m of trade receivables and royalties were outstanding at June 30. H2 cashflow was already positive. More royalty cash arriving during October and November should reduce the amount SEE needs to borrow and potentially give it greater leverage with lenders.

But there is another intriguing possibility.

Robotics deal

SEE has recently launched its Human-Centred Physical AI platform for robotics and, unusually, CEO Paul McGlone specifically highlighted the market reaction to it in today’s refinancing announcement. SEE also announced an advanced robotics development contract in August – with Mitsubishi, I believe.

If that work were to develop into a significant licensing or commercial agreement, it would materially change the refinancing equation.

We can’t assume such a robotics deal is imminent (though, personally, I suspect it may be closer than the market realises). But if it were to occur, say in October, the negotiations with lenders could look very different indeed.

For now, the two-month extension may be less a sign of weakness than a cunning opportunity for SEE to improve its hand.

The writer holds stock in Seeing Machines.

Is Mitsubishi involved in the Seeing Machines refinance?

Posted on by
Reply

Seeing Machines’ refinancing is getting close to the point where investors should finally find out who is prepared to put money behind the company.

The US$47.5m convertible loan note, held by Magna, matures on October 4. In July, Seeing Machines said it had received multiple term sheets from potential lenders. Then, in August, came a more significant update: the company said it had agreed indicative terms and entered an exclusive negotiation period with a potential lender.

So who is behind the deal?

One possibility that I keep coming back to is Mitsubishi.

Mitsubishi Electric Mobility is Seeing Machines’ largest shareholder, with a 19.9 per cent stake. It invested £26.2m in the company in December 2024, helping strengthen Seeing Machines’ balance sheet while establishing a much closer strategic relationship between the two businesses.

The relationship goes considerably further than simply owning shares. Seeing Machines has an automotive production programme with Mitsubishi in Japan, while the two companies have been pursuing opportunities together in automotive and aftermarket markets.

The relationship may also be about more than cars. Seeing Machines and Mitsubishi are working together in robotics and Physical AI, potentially giving Mitsubishi a strategic interest in the company’s technology well beyond automotive.

That makes Mitsubishi an obvious candidate when considering who might have an interest in ensuring Seeing Machines remains properly funded.

But there is an important reason not to jump to the conclusion that Mitsubishi itself is providing the refinancing.

Seeing Machines said it had been talking to a number of potential lenders and had received multiple term sheets. That sounds more like a competitive financing process involving banks or specialist lenders than a straightforward shareholder loan.

There is, however, another intriguing possibility.

Mitsubishi Electric has established relationships with major Japanese banks. MUFG Bank is one of its principal lenders, with Mizuho Bank also among its significant banking relationships. If a Japanese bank were involved in the Seeing Machines refinancing, it would provide a possible link between Mitsubishi’s strategic interest and the financing.

MUFG is particularly interesting because it has a long-standing relationship with the wider Mitsubishi group. But there is currently no public evidence that MUFG, Mizuho or another Japanese bank is involved in Seeing Machines’ refinancing.

There is another reason Mitsubishi could be watching closely. Its proposed automotive alliance with Foxconn has highlighted the importance of electrification, autonomous driving and software-defined vehicles — areas in which Seeing Machines’ driver-monitoring, occupant-monitoring and emerging Physical AI technology could become increasingly relevant.

So there are three broad possibilities.

Mitsubishi could provide some or all of the refinancing itself. A Japanese bank with a relationship with Mitsubishi could be involved. Or the lender could simply be an entirely independent bank or private-credit investor attracted by Seeing Machines’ rapidly improving financial performance.

Most investors are probably betting on the third possibility.

But if the refinancing announcement does reveal a Mitsubishi connection — particularly through a Japanese financial institution — it could be considerably more significant than simply removing a financial overhang.

It could signal that Mitsubishi sees Seeing Machines as a strategic technology company with a future that extends well beyond the car industry.

The writer holds stock in Seeing Machines.