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Bluglass (ASX:BLG) looks to raise $8M to overcome product development hurdle

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ASX:BLG      MCAP $71.25M
07 June 2021 15:01 (AEST)

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Bluglass (BLG) has entered the week in a trading halt ahead of an $8 million capital raise.

So far, there are no details on the raise but the company said it would release more information on Wednesday, June 9, when it leaves the halt.

Bluglass uses Remote Plasma Chemical Vapour Deposition (RPCVD) technology for the manufacture of high-value semiconductor devices such as laser diodes,
next-generation LEDs and microLEDs.

Today the company has also released the latest testing results for its laser diode development.

The prototype laser diodes showed lasing results consistent with commercial specifications.

However, testing has shown weaknesses with the post epitaxy production steps, with gradual loss of light output seen due to degradation of the optical facet of the Bluglass laser chip.

The company says while these results are disappointing, they do confirm Bluglass’s laser core design is working to specification and the challenges it is facing are in production steps involving third party providers.

Bluglass intends to place all its focus on resolving this issue. Given this challenge, the company is conducting a placement to ensure the success of this phase of work.

“As an historically R&D business, these steps are new to Bluglass, but also well understood in the industry generally and hence Bluglass is confident that
they can be solved expeditiously,” the company said.

Blueglass last traded at 5.6 cents per share.

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