AES Semigas


14 June 2021

BluGlass private placement to raise A$2m and rights issue to raise A$6m

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 announced a non-renounceable entitlement offer on a 1-for-4 basis to holders of ordinary shares in the company held at 7pm (Sydney time) on 15 June (the record date).

BluGlass is also undertaking a private placement of 66,666,667 new fully paid ordinary shares to raise $2m at an issue price of $0.03 per new share. The new shares will be issued to a “leading technology-focused fund” on or around 11 June and will be eligible to participate in the entitlement offer.

The entitlement offer will be offered to those shareholders who are registered as a holder of ordinary shares in the company 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. Eligible shareholders will receive an entitlement offer booklet, including a personalised entitlement and acceptance form, which will provide further details of how to participate. A copy of the offer booklet was lodged with the ASX on 9 June and is available on the ASX website.

The offer booklet will be dispatched to eligible shareholders on or before 16 June.

Details of entitlement offer

Pursuant to the entitlement offer, the firm will issue up to 197,333,333 new shares to raise about A$6m (before costs). The new shares will rank equally with existing ordinary shares in the company.

Eligible shareholders will be invited to subscribe for 1 new share for every 4 ordinary shares held by them at the record date. Fractional entitlements will be rounded up to the next whole new share. BluGlass directors and key executives intend to take up their full entitlement. The issue price per new share of $0.03 represents a 46.4% discount to the firm’s closing share price of $0.056 on 4 June, and a 47.5% discount to the firm’s 15 day VWAP to 7 June of $0.0571. The firm will make an application to the ASX for the official quotation of the new shares.

Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable. The entitlement offer is not underwritten. Eligible shareholders who do not take up their entitlements will not receive any value in respect of those entitlements that they do not take up (and their shareholding in the company will be diluted). No shareholder approval is required for the entitlement offer.

Purpose of the placement and entitlement offer, and use of funds

BluGlass intends to invest the proceeds of the placement and entitlement offer as follows:

  • ongoing R&D of the laser diode product;
  • continuing product development and testing to expedite delivery of laser diode products in selected markets;
  • investment in sales & marketing channels for future laser diode product launch;
  • continue 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;
  • reduce operating expenses by developing in-house fabrication processes; and
  • general working capital to enable ongoing execution of business strategy.

See related items:

BluGlass’ prototype lasers meet commercial power and wavelength specs

Tags: BluGlass RPCVD