13 March 2023
BluGlass Ltd of Silverwater, Australia – which manufactures gallium nitride (GaN) blue laser diodes based on its proprietary low-temperature, low-hydrogen remote-plasma chemical vapor deposition (RPCVD) technology – has secured $10.2m in commitments from international and Australian institutional and sophisticated investors via a strongly supported share placement at an issue price of $0.06 per share.
BluGlass is also undertaking a non-renounceable entitlement offer to raise up to a further $2.7m (before costs), enabling shareholders to participate on the same terms as the placement.
Funds will be used for additional fab equipment to scale and speed product delivery, and expand BluGlass’ product offering to increase market competitiveness.
“The support of institutional and sophisticated investors provides confidence in our technical and commercial roadmaps, and we are pleased to welcome new and returning global funds to the register,” says chair James Walker. “The BluGlass team remains focused on growing market traction, generating recurring revenues, and delivering value for our customers and shareholders,” he adds.
“This funding will accelerate our commercialization progress with advanced in-house capabilities enabling us to scale and speed our product delivery to meet significant unmet market needs,” says CEO Jim Haden. “The market’s response to our initial products has been very encouraging, and we are looking to capitalize on this momentum to rapidly build our customer base and laser diode bookings,” he adds.
“We’re also investing in our GaN laser offering to leverage our competitive advantages, address new markets and applications, and take market share,” Haden continues. “At the same time, we’re continuously improving the power and efficiency of our products toward world-class standards, which will support growth in orders and revenue.”
The placement comprises an offer of 169,992,032 new fully paid ordinary shares in BluGlass at an issue price of $0.06, representing a 20% discount to the last closing share price on 8 March and a 21.7% discount to the 15-day volume-weighted average market price of the shares. New shares under the placement will rank equally with BluGlass’ existing ordinary shares.
For the entitlement offer, eligible shareholders may apply for 1 new share for every 30 fully paid ordinary shares held at 7pm (Sydney time) on 16 March at an issue price of $0.06.
All shareholders at the record date with a registered address in Australia or New Zealand will be eligible to participate. Eligible shareholders may take up their entitlement to acquire new BluGlass shares in full, in part, or not at all.
The entitlement offer is non-renounceable, so eligible shareholders who do not wish to subscribe for some, or all, of their entitlement may not sell or transfer their rights.
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