27 March 2020
BluGlass announces rights issue to provide capital to expedite laser diode opportunity
BluGlass Ltd of Silverwater, Australia (which was spun off from the III-nitride department of Macquarie University in 2006) has announced a non-renounceable entitlement rights issue on a 1-for-1 basis to holders of ordinary shares held at 7pm (AEDT) on 27 March.
The issue price of $0.02 represents a 23.08% discount to the firm’s last close of $0.026 on 23 March, and a 43.32% discount to the firm’s 15 day VWAP (to 23 March) of $0.0387.
The entitlement offer is offered to shareholders registered as a holder of ordinary shares as at the record date with a registered address in Australia, New Zealand and certain other jurisdictions in which the firm has decided to extend the entitlement offer and are not in the USA.
Pursuant to the entitlement offer, BluGlass will issue up to 418,907,072 new ordinary shares to raise up to A$8,378,141 (before costs). The new shares will rank equally with existing ordinary shares in the firm.
Under the entitlement offer, eligible shareholders will be invited to subscribe for 1 new share at $0.02 for every 1 ordinary share held at the record date.
Fractional entitlements are being rounded up to the next whole new share. The firm will apply to the ASX for official quotation of the new shares.
BluGlass is developing and commercializing its proprietary low-temperature remote-plasma chemical vapor deposition (RPCVD) technology for manufacturing group III nitrides, offering better-performing, lower-cost devices and more environmentally sustainable processes for producing LEDs for automotive and overhead LED lighting, micro-LEDs for wearables and virtual reality (VR) displays, and power electronics for efficient power conversion.
BluGlass intends to invest the proceeds of the entitlement offer as follows:
- ongoing development of the laser diode product pipeline and business;
- product development and testing to expedite delivery of laser diode products in selected markets;
- investment in sales and distribution channels for laser diode product launch in early 2021;
- continuing investment in specialist laser diode epitaxy and commercialization expertise;
- advance development with existing and potential new industry strategic partners, including LED, micro-LED and RPCVD market participants; and
- general working capital to enable ongoing execution of business strategy.
Proceeds will also be used by to pay for the costs of the entitlement offer and to provide working capital to support continued sales growth.
BluGlass’ directors and key executives intend to take up their full entitlement under the rights issue.