BLUGLASS SECURES $4.3 MILLION TO FUND GROWTH; LAUNCHES SPP OFFER

Highlights

• BluGlass has raised $4.3 million via a Placement to institutional and sophisticated investors
• SPP Offer to raise up to $9.0 million
  • allows existing shareholders to participate on the same terms
• Funds will be used to scale product delivery to fulfil new and existing contracts, additional fab equipment, and working capital

Global semiconductor developer BluGlass Limited (ASX: BLG) has received $4.3 million in commitments from institutional and sophisticated investors via a strongly supported share placement (Placement) at an issue price of $0.037 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 on the same terms.

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, “The continued support of institutional and sophisticated investors reflects growing confidence in BluGlass’ visible laser technology, experienced management, and significant growth runway.”

BluGlass CEO Jim Haden added, “BluGlass has made significant commercialisation progress over the past year, launching our first laser products, vertically integrating our manufacturing supply chain, growing customer engagement across all our target verticals, and securing our largest ever revenue contract. This funding supports scaling our operations as we grow project revenues, enabling us to invest in additional equipment and capabilities to accelerate laser production and delivery to meet customer demand.

“We’re also strategically investing in the development of novel, next-generation products that further strengthen our competitive advantages. Our recent sub-contract with the US Department of Defense for the development of Distributed Feedback (DFB) lasers is a good example, highlighting the significant demand for novel, better performing lasers that are also higher value.”

$4.3 million Placement

The Placement comprises an offer of 116,216,216 new fully paid ordinary shares in BluGlass at an issue price of $0.037. The issue price represents a 19.6% discount to the last closing share price on Thursday, 8 February 2024 and a 24.3% discount to the 15-day volume weighted average market price of the Company’s shares.

The Placement includes one free attaching listed option for every new share (Attaching Option), exercisable at $0.046 and expiring on 28 February 2025. Every free attaching option exercised will include one fully paid BLG share and one additional option (Piggyback Option), exercisable at $0.06 and expiring on 28 February 2027. The Attaching Options are subject to shareholder approval at an Extraordinary General Meeting, to be held on 4 April 2024.

New shares under the Placement will rank equally with BluGlass’ existing ordinary shares. BluGlass intends to list the Attaching Options on the ASX.

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

SPP Offer

BluGlass is undertaking an SPP Offer to raise up to a further $9.0 million before costs on the same terms as the Placement to Shareholders with addresses in Australia or New Zealand as at 7.00pm, Friday, 9 February 2024 (Eligible Shareholders).  Each Eligible Shareholder may apply for up to $100,000 of new fully paid ordinary shares in the Company at an issue price of $0.037.

Participating shareholders will receive one free attaching option for every new share, exercisable at $0.046 and expiring on 28 February 2025. In addition to one fully paid BLG share issued, every free attaching option exercised will include one Piggyback Option, exercisable at $0.06 and expiring on 28 February 2027. The Attaching Options are subject to shareholder approval at an Extraordinary General Meeting, to be held on 4 April 2024.

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

Indicative Timetable for the SPP

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

 

 

• Capital raising