AXT Prices $87 Mln Stock Offering At $12.25/shr

(RTTNews) - AXT, Inc. (AXTI), a manufacturer of compound semiconductor wafer substrates, on Monday announced the pricing of an underwritten public offering of about 7.10 million shares at $12.25 per share.

The offering is expected to close on or about December 30.

The offering is expected to generate gross proceeds of approximately $87 million before underwriting discounts and other offering expenses.

The company granted the underwriter a 30-day option to purchase up to 1.06 million additional shares at the public offering price, less underwriting discounts.

The company said that if fully exercised, total gross proceeds are expected to be approximately $100 million.

The company said net proceeds will be used primarily to expand manufacturing capacity at its subsidiary, Beijing Tongmei Xtal Technology, to boost production of indium phosphide substrates for global export.

Remaining proceeds will be allocated to research and development, as well as general corporate and working capital purposes.

In the pre-market trading, AXT is 15.42% lesser at $13.01 on the Nasdaq.