BluGlass Limited (ASX: BLG), a vertically integrated developer and manufacturer of visible gallium nitride (GaN) lasers for next-generation defence, aerospace, quantum, biotechnology, sensing, and advanced computing applications, announced it has secured a new A$8.0 million research and development funding facility. The global semiconductor developer has agreed to terms with Rockford RDF Pty Ltd as trustee for the Rockford RDF Unit Trust for the facility, which replaces its existing A$2.27 million Radium facility. This new arrangement provides approximately A$5.5 million of additional funding liquidity after the refinancing.
The facility is primarily secured against BluGlass’ anticipated FY26 and FY27 R&D Tax Incentive refunds. It also includes a limited featherweight security over other company assets. The terms of the facility stipulate an interest rate of 16.5% per annum, along with a 2.5% establishment fee. This fee comprises A$100,000 capitalised into the loan balance and A$100,000 payable in BluGlass shares. Repayment of A$2.75 million is scheduled from the FY26 R&D Tax Incentive refund, with the remaining balance to be repaid from the FY27 R&D Tax Incentive refund, no later than 1 March 2028.
The additional funding is earmarked to support BluGlass’ working capital requirements and various growth initiatives. CEO and Managing Director Jim Haden commented that the new debt facility grants BluGlass early access to anticipated R&D Tax Incentive refunds. These funds will be instrumental in advancing the company’s operational and commercial objectives, including scaling production capabilities, converting revenue opportunities, and continuing to develop differentiated laser solutions for high-growth markets such as quantum sensing, advanced manufacturing, and defence. The Board of BluGlass approved this announcement for release.
