BluGlass Ltd of Silverwater, Australia says that it has received commitments totalling A$2.35m (US$2.45m) for a placement of new fully paid ordinary shares to institutional investors.
When the placement is settled later this week, BluGlass proposes to issue 11.7 million fully paid ordinary shares at A$0.20 each (a discount of about 11% on the closing price on 28 November of $0.22).
In additiom, shareholders on BluGlass' register at 5pm on 30 November with registered addresses in Australia and New Zealand will be given the opportunity to apply for up to A$15,000 worth of ordinary shares (subject to any scale-back determined by the firm's directors) at the same issue price, without incurring brokerage or transaction costs via a shareholder share purchase plan (SPP).
Spun off from the III-nitride department of Macquarie University of Sydney, Australia in 2005, BluGlass has developed a low-temperature process using remote-plasma chemical vapor deposition (RPCVD) to grow materials including gallium nitride (GaN) and indium gallium nitride (InGaN) on glass substrates, potentially offering cost, throughput and efficiency advantages for the production of LEDs.
The purpose of the new placement and SPP is to provide funds for:
- the commercialization of BluGlass' RPCVD technology for LED applications;
- further development for solar cell applications;
- match funding, should BluGlass be successful with its application for a grant under the Clean Technology Innovation Program of the Australian Government's AusIndustry initiative; and
- general working capital requirements.
Further details of the proposed SPP will be provided in the SPP Offer Booklet and Application Form, to be sent to eligible shareholders this week. The expected opening date of the SPP is 7 December.
