Join our daily newsletter At The Bell to receive exclusive market insights
- Semiconductor developer BluGlass (BLG) raises $3.7 million from a non-renounceable entitlement offer to existing shareholders
- Participants received one new BlueGlass share for every four shares held at an issue price of three cents each
- The entitlement offer follows the company’s recent $3.4 million share placement
- BluGlass will use the money from both capital raises to adapt its new Silicon Valley manufacturing facility for gallium nitride laser diode production as well as for operational costs and talent hire
- Shares in BluGlass are up 3.33 per cent on the market and are trading at 3.1 cents
Australian semiconductor developer BluGlass (BLG) has raised $3.7 million from a non-renounceable entitlement offer to existing shareholders.
Participants received one new BluGlass share for every four shares held at an issue price of three cents per share.
The new block of shares totalling about 123.5 million shares was expected to be allocated on April 21.
The entitlement offer followed the company’s $3.4 million share placement announced in late March.
The placement funds were raised through the issue of about 114.2 million new BluGlass shares to sophisticated and institutional investors at the same issue price of three cents apiece.
BluGlass said it would use the proceeds from both capital raises to adapt its new Silicon Valley manufacturing facility for gallium nitride laser diode production as well as for operational costs and talent hire.
“Our acquisition of a purpose-built laser diode facility enables us to control significant aspects of the supply chain, accelerating our ability to bring new, higher-value products to market while reducing manufacturing overhead,” Executive Chairman James Walker said.
“Acquiring an operational laser diode fab at a significant discount to market rates is extremely rare and it caters to our medium and longer-term needs.”
BLG shares were steady at three cents at 1:53 pm AEST.
