BLUGLASS COMPLETES $2.3M PLACEMENT & LAUNCHES SPP

Highlights

• BluGlass has received commitments for $2.3 million via a Placement to institutional and sophisticated investors (including the Board and Management)
• SPP Offer to raise up to $6.0 million
  • allows existing shareholders to participate at the lower of $0.013 or a 2.5% discount to the 5-day VWAP for BLG shares prior to the closing date for the SPP Offer, up to a total of $100k per shareholder
  • institutional funds have committed to subscribe for up to $3.0 million of any shortfall from the SPP Offer ensuring that the company raises a minimum of $5.3 million from the Placement and SPP Offer
• Funds will be used to scale product delivery to fulfil new and existing contracts, additional fab equipment, and working capital
  • supports the Company’s growing pipeline (US$90-100 million project value across 26 projects in various stages of negotiation) in high growth sectors, including defence, quantum, and consumer electronics

Global semiconductor developer BluGlass Limited (ASX: BLG) has received $2.3 million in commitments from institutional and sophisticated investors and the Board and Management via an oversubscribed share placement (Placement) at an issue price of $0.013 per shareBluGlass is also undertaking a Share Purchase Plan (SPP Offer) to enable eligible shareholders in Australia and New Zealand to acquire up to $100,000 worth of Shares at the lower of $0.013 or a 2.5% discount to the 5-day VWAP for BLG shares prior to the closing date for the SPP Offer.

Funds will be used to scale and speed production and delivery of BluGlass’ visible lasers to fulfil new and existing contracts. The raise will also support additional fab equipment, working capital, and development of next-generation products to increase market competitiveness and sales.

BluGlass Chair James Walker said, “We are delighted to have received strong support of both new and existing institutional and sophisticated investors, helping bring to market the next frontier of visible laser technology for the global quantum, defence, and aerospace markets. This investment is testament to the Company’s execution of our strategy, our key industry partnerships, including with the US Department of Defense, combined with the potential of our high-performance precision technology for next-generation applications.”

BluGlass CEO Jim Haden added, “BluGlass has achieved critical milestones over the past 12 months, demonstrating world-record laser performance, strong revenue growth, and strategic customer wins that significantly progress our technical and commercial roadmaps. This support helps ensure the Company is in a strong position to execute on our growing US$90-100 million project pipeline, a key foundation to securing large-scale, long-term follow-on revenues; as we work with key industry partners to design-in BluGlass high-fidelity lasers in next generation laser solutions in quantum sensing, aerospace, and defence applications.

“I’d like to take this opportunity to thank existing shareholders for their continued support and to welcome our new investors to the BluGlass register.”

$2.3 million Placement

The Placement comprises an offer of approximately 180.9 million new fully paid ordinary shares in BluGlass at an issue price of $0.013. The issue price represents an 18.75% discount to the last closing share price on Monday, 28 April 2025 and a 25.5% discount to the 10-day volume weighted average market price of the Company’s shares.

The BluGlass Board and senior Management have committed to a total subscription of $90,000 worth of New Shares. Of this, a total of $44,000 worth of New Shares (being ~3.5 million New Shares) have been subscribed for at the Offer Price by all the BluGlass Directors under the Placement (“Director Placement”). The Director Placement is conditional on shareholder approval for the purposes of ASX Listing Rule 10.11.

New shares under the Placement will rank equally with BluGlass’ existing ordinary shares.

SPP Offer

BluGlass is undertaking a Share Purchase Plan (SPP) Offer to raise up to a further $6.0 million before costs on the same terms as the Placement to Shareholders with addresses in Australia or New Zealand as at 7.00pm, Wednesday, 30 April 2025 (Eligible Shareholders).  Each Eligible Shareholder may apply for up to $100,000 new fully paid ordinary shares in the Company at an offer price being the lower of:

• A$0.013 per share; and
• a 2.5% discount to the VWAP of shares traded on the ASX during the five trading days up to the closing date of the SPP rounded to the nearest tenth of a cent.

Eligible shareholders may take up their entitlement to acquire new BluGlass shares in full, in part, or not at all.

Institutional funds have committed to subscribe for up to $3 million of any shortfall from the SPP Offer (SPP Shortfall Securities) on the same terms as the SPP Offer. The SPP Shortfall Securities will only be issued if the SPP Offer does not raise at least $3.0 million. The Company has also agreed to issue 19,500,000 New Options and pay $90,000 in cash to institutional investors who have committed to subscribe to SPP shortfall securities (SPP Shortfall Options).

Issue of SPP Shares and all Attaching Options are subject to shareholder approval at an Extraordinary General Meeting, to be held on or around 9 June 2025.

Bell Potter Securities Limited is lead manager and bookrunner to the Placement and SPP Offer.

Attaching Options

Participants in the Placement and SPP Offer will receive one free attaching option for every new share, exercisable at $0.013 and have an expiry date of the earlier of 31 May 2026 or 30 days from the date on which the Company announces a contract win from a Tier 1 company for a total contract value of greater than $3 million.

In addition to one fully paid BLG share issued, every free attaching option exercised will include one Piggyback Option, exercisable at $0.019 and expiring on 31 May 2028. It is intended that the Piggyback Options will be quoted on the ASX, subject to the Company satisfying ASX spread requirements, including (without limitation) having a minimum of 50 holders with a marketable parcel (as defined in the ASX Listing Rules).

Subject to shareholder approval, the Company has also agreed to issue 19,500,000 New Options to institutional investors who have committed to subscribe to SPP shortfall securities (SPP Shortfall Options).

Indicative Timetable for the SPP (Updated)

The timetable below is indicative only and subject to change. All times below are Sydney, Australia time.

A PDF copy of the announcement is available here: BluGlass secures $2.3m, launches SPP

Download the presentation pack here: BluGlass (BLG) Presentation April 2025