SYDNEY, AUSTRALIA: Australian semiconductor developer BluGlass Limited (ASX: BLG) has reached settlement to acquire a commercial Silicon Valley laser diode manufacturing facility lease and manufacturing equipment (the Fab) for US$2.5 million.
The acquisition will fast-track BluGlass’ growth strategy, considerably increasing its laser diode manufacturing capability and bringing ahead higher-value product development timelines.
To fund the acquisition and ongoing operation of the manufacturing facility, BluGlass has secured A$3.4 million via a Placement to new and existing institutional and sophisticated investors. The Company is additionally undertaking a non-renounceable 1:4 Entitlement Offer to raise as much as a additional A$7.5 million to allow shareholders to take part on the identical phrases because the Placement.
Commenting on the strategic acquisition, BluGlass’ President Jim Haden said: “We plan to take benefit of a distinctive opportunity, to purchase a full-suite commercial laser diode fab for a fraction of the circa US$40 million it would cost us to construct today. The acquisition aligns and accelerates our longer-term growth plans, bringing core fabrication processes in-house to eliminate provide chain variability and enhance the standard and consistency of our laser diodes. Importantly, it provides us with greater administration over development roadmaps, enabling us to launch higher-value merchandise sooner.
“In addition to greater than quadrupling development, manufacturing turns and wafer capacity, our personal fab enables us to halve manufacturing prices and has the potential to bring ahead positive cashflows to 2024/2025. It triples our income generation capacity, and permits us to execute on our strategic imaginative and prescient of becoming the industry’s easiest-to-use laser light by providing the most versatile and agile product development and manufacturing. As one of simply 4 end-to-end gallium nitride laser diode producers globally, we have a significant alternative to construct share inside a fast-growing market anticipated to attain US$2.5 billion by 2025.
“The acquisition will quick track our transition from a cutting-edge R&D firm to a commercial supplier of industry-leading GaN laser diodes. Over the previous year, we have attracted industry experts to our administration and Board, superior our product development of a number of laser merchandise and are delivering against a transparent commercialization and growth strategy. A Silicon Valley-based fab will increase our entry to extremely expert semiconductor and GaN expertise even further.
“We’re inspired by the strong ongoing support of our existing investors, and welcome new institutional funds to the register at a pivotal interval for the Company. BluGlass is focused on the commercialisation of our first direct-to-market laser diodes. We stay assured about our future. We have the proper team and technique in place and are now inside the method of securing the ultimate piece of the puzzle, a producing fab to additional expand our product providing and scale our operations.”
www.bluglass.com.au