BluGlass Limited (ASX:BLG), an Australian semiconductor developer, has concluded its oversubscribed non-renounceable entitlement rights issue, raising the maximum of $5.92 million before costs.
The rights issue enabled shareholders to subscribe for new shares on a 1 for 4 basis at $0.03 per share.
Notably, the funds will be used to expedite the commercialisation of a suite of laser diode products, from small-batch custom lasers through to high-volume and off the shelf products.
In addition, BluGlass has also agreed on a separate private placement to Viriathus Capital for a further $500,000 on the same terms as the rights issue.
Offer oversubscribed.
BluGlass executive chair James Walker said: “We are encouraged by the incredible support of our shareholders, which has enabled us to close our entitlement offer oversubscribed.
“BluGlass has raised a total of $8.42 million, through our entitlement offer and placements”
Strong support from shareholders saw shortfall applications exceed the rights issue target and a pro-rata scale back of approximately 4% will be applied to all shortfall applicants, with the refund amount to be credited to shareholders in the coming week.
Direct-to-market laser diodes
Walker adds: “This capital allows BluGlass to progress the development and launch of our first direct-to-market laser diodes, resolve the reliability issue and optimise aspects of the production supply chain, ensuring we can scale our manufacturing capability to deliver commercial products needed by the market.
“BluGlass has a clear path to commercialisation with multiple laser diode products in the manufacturing supply chain.
“We are continuing to work with our development partners to address initial reliability issues and remain confident that, with this new investment, those issues can be successfully resolved.
“I’d like to thank our shareholders for their ongoing support. Our technology is industry-leading, and we remain confident that our commercialisation strategy provides us with the quickest path to revenue and profitability.”
Allotment of new shares from the rights issue is expected to occur on July 13, 2021, with the issue of 197,333,326 fully paid ordinary shares.
In addition, the allotment of new placement shares is also expected to occur on or around July 13, 2021, with the issue of 16,666,667 fully paid ordinary shares.
Developing leading-edge semiconductors
BluGlass is a provider to the global gallium nitride nonlinear (GaN) photonics industries, delivering cutting-edge, custom laser diode and LED development across the industrial, defence, display, and scientific markets.
Also, the company develops photonics with its proprietary low temperature, low hydrogen, remote plasma chemical vapour deposition (RPCVD) manufacturing technology.
- Ephrems Joseph