AXT, Inc. Announces Up to RMB 3.67 Billion (Approximately US$545 Million) in Private Equity Financing for Subsidiary Tongmei
Key Highlights
- ➤Tongmei private equity financing ranges from RMB 1.912 billion to RMB 3.669 billion
- ➤Maximum financing equals approximately US$545 million for manufacturing expansion and working capital
- ➤Proceeds target expanded indium phosphide wafer capacity amid demand outpacing supply
- ➤AXT expects to retain approximately 73.40% ownership and consolidate Tongmei
- ➤Financing closing is expected in December 2026, subject to conditions and approvals
Expert Statements
Morris Young, Chief Executive Officer of AXT
“This strategic financing represents a milestone for Tongmei, which is issuing its own shares to provide RMB directly into its operations.”
Morris Young, Chief Executive Officer of AXT
“Funds raised by Tongmei will be used to advance capacity expansion for indium phosphide wafers at a time when demand for these wafers is outpacing supply.”
Morris Young, Chief Executive Officer of AXT
“Proceeds will also be used to increase capacity at our raw material companies in China.”
Morris Young, Chief Executive Officer of AXT
“The lead investor, which is a leading Asia asset manager, has been instrumental in guiding companies through overseas listing process, and is committed to assisting Tongmei’s process to achieve an overseas listing.”
AXT, Inc. Announces Up to RMB 3.67 Billion (Approximately US$545 Million) in Private Equity Financing for Subsidiary Tongmei
AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today announced that its majority-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), has entered into definitive agreements for a private equity financing to fund further expansion of its manufacturing capacity for indium phosphide semiconductor substrates, expansion of its principal business operations, capital expenditures and general working capital. The financing agreements provide for a private equity investment in Tongmei by certain institutional investors of a minimum of RMB 1,912,350,000 (approximately US$285 million) and up to a maximum of RMB 3,668,639,053.25 (approximately US$545 million) (the “Maximum Amount”) in the ordinary shares of Tongmei.
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