Bluechiip Raises $5.5M and announces share purchase plan

Download the full announcement here: https://www.asx.com.au/asxpdf/20180910/pdf/43y5vwqsg73qxh.pdf

 

BLUECHIIP RAISES $5.5 MILLION AND ANNOUNCES SHARE PURCHASE PLAN

 

Bluechiip Limited (Bluechiip or the Company, ASX: BCT), a leader in the development of sample-tracking technology for harsh environments, today announced it has successfully raised $5.5 million via an oversubscribed placement to sophisticated and professional investors.

The placement comprised approximately 93 million ordinary fully-paid shares at an issue price of $0.059 per ordinary share.

Settlement of the placement is scheduled to occur on Thursday 13 September 2018 with allotment of the placement shares to occur on Friday 14 September 2018.

The placement was conducted in accordance with ASX Listing Rules 7.1 and 7.1A and will be settled in one tranche.

CCZ Statton Equities acted as Lead Manager to the placement.

Andrew McLellan, Bluechiip Managing Director & CEO, said, “The board is delighted with the oversubscribed placement, especially coming after our recently updated agreement with Labcon North America for A$15.9 million of sales over a three-year period, announced on 29 August. The capital raised will provide a foundation for Bluechiip to finalise its product portfolio through to validation and release of our chips, readers and software. It also enables us to fully support our OEM partners’ product release and to fund working capital to meet our growing orders. Furthermore, the capital raised will allow us to accelerate the opportunities and discussions we currently have in place.

We are also pleased to announce a Share Purchase Plan and invite all existing shareholders to subscribe for shares at the same price as the placement and without brokerage.

Bluechiip is now well positioned for a very exciting and sustainable future and we thank our new and existing shareholders for their support.”

 

Share Purchase Plan

Following the placement, Bluechiip will now invite existing shareholders to invest in the Company via a Share Purchase Plan (SPP). Under the SPP, holders of existing Bluechiip shares on the share register as at 7pm (Sydney time) on the record date of Friday 7 September 2018 and who are eligible shareholders in Australia or New Zealand will each be invited to subscribe for up to A$15,000 of new fully paid ordinary shares in Bluechiip at the placement price of $0.059 per ordinary share.

No brokerage costs are applicable under the SPP.

Participation in the SPP is optional and the SPP will not be underwritten. Further information in relation to the SPP, including the SPP terms and conditions, will be outlined in a separate SPP booklet which will be despatched to eligible shareholders later this week.

 

The timetable for the SPP is as follows:

Event Date
Record Date to determine eligibility to participate in SPP 7 September 2018
Opening Date 13 September 2018
Despatch of SPP Offer Document and Application Form 13 September 2018
Closing Date 28 September 2018
Allotment of SPP Shares 3 October 2018
Commencement of trading of Shares on ASX 4 October 2018

 

The Bluechiip Board reserves the right to scale back and/or close the offer early. The timetable is indicative only and Bluechiip may, at its discretion, vary any of the above dates by lodging a revised timetable with ASX. The commencement of trading of new shares is subject to confirmation from ASX.

Funds raised from the placement and SPP will be applied to:

  • Support the development and validated release of Bluechiip‘s core product line, chips, readers and software to support OEM partner product releases
  • Working capital to build inventory of chips and readers including the handheld reader and multi-sample reader
  • Continue to progress and convert BCT’s expanding pipeline of OEM opportunities
  • General working capital purposes