BluGlass closes oversubscribed rights issue
Funds will be used to expedite laser diode development through to first commercial orders
Australian semiconductor developer BluGlass has closed its oversubscribed non- renounceable entitlement rights issue, successfully raising the maximum of $5.92m before costs. The rights issue enabled eligible shareholders to subscribe for new shares in the Company on a 1 for 4 basis at $0.03 per share.
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 weeks.
BluGlass has also agreed a separate private placement to Viriathus Capital of a further $500,000 on the same terms as the rights issue.
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 $8.42m, through our entitlement offer and placements. 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 13 July 2021 with the issue of 197,333,326 fully paid ordinary shares. Allotment of new placement shares is also expected to occur on or around 13 July 2021, with the issue of 16,666,667 fully paid ordinary shares.