BluGlass raises $3.4 million via placement

The placement price represents a 6.2 per cent discount to the last closing share price on March 21 and an 11.7 per cent discount to the 15-day volume-weighted average price

Semiconductor developer BluGlass (BLG) has raised $3.4 million via placement to acquire a Silicon Valley laser diode production facility and has launched a non-renounceable $7.5 million entitlement offer to fund the facility’s ongoing operations.

The acquisition includes the facility lease and manufacturing equipment which cost BluGlass $2.5 million, and will cost the company a further $8.5 million to run and maintain the facility.

In order to settle the acquisition and fund the initial start-up of operations of the production facility, the company had secured commitments from its institutional investors via issue of around 114 million placement shares at an issue price of three cents a share.

The placement price represents a 6.2 per cent discount to the last closing share price on March 21 and an 11.7 per cent discount to the 15-day volume-weighted average price.

The company has also launched a non-renounceable entitlement offer to raise up to $7.5 million via the issue of around 251 million new shares to fund the facility’s operational costs.

Eligible Australia and New Zealand shareholders will be able to apply for one new share for every four shares held in the company at March 29 at the same issue price as the placement.

Shareholders will also receive one free listed bonus option for every eight shares they hold at a strike price of 3 cents.

BluGlass President Jim Haden said that the acquisition ‘aligns and accelerates (the company’s) longer-term growth plans’.

He said: It triples our revenue generation capacity, and allows us to execute on our strategic vision of becoming the industry’s easiest to-use laser light by offering the most flexible and agile product development and manufacturing.