9 July 2021
BluGlass closes oversubscribed entitlement rights issue of AUS$5.92m
BluGlass Ltd of Silverwater, Australia – which develops low-temperature, low-hydrogen remote-plasma chemical vapor deposition (RPCVD) technology for manufacturing devices such as laser diodes, next-generation LEDs and micro-LEDs – has closed its oversubscribed non-renounceable entitlement rights issue, raising the maximum of AUS$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 about 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 AUS$500,000 on the same terms as the rights issue.
“BluGlass has raised a total of AUS$8.42m, through our entitlement offer and placements,” notes executive chair James Walker. “This capital allows BluGlass to progress the development and launch of our first direct-to-market laser diodes, resolve the reliability issue and optimize aspects of the production supply chain, ensuring we can scale our manufacturing capability to deliver commercial products needed by the market,” he adds.
“BluGlass has a clear path to commercialization 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,” Walker continues. “We remain confident that our commercialization 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 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, with the issue of 16,666,667 fully paid ordinary shares.