Business
AXT Announces Strategic Plan to Access China’s Capital Markets
Subsidiaries Take First Step Towards an IPO in ChinaPrivate Equity Round Underway Process initiated to list shares of subsidiary, Tongmei, on China’s STAR
About this update from Axt Inc
[{"type":"text","content":"Subsidiaries Take First Step Towards an IPO in ChinaPrivate Equity Round Underway\n Process initiated to list shares of subsidiary, Tongmei, on China’s STAR MarketTwo raw material companies to be merged into TongmeiDefinitive agreements executed for initial private placement of shares of Tongmei to meet listing requirementsAXT to maintain its Nasdaq listing; its Fremont, Calif. headquarters; and its focus on global opportunitiesConference call to discuss the announcement today at 2:30 pm PT. Details included in this release FREMONT, Calif., Nov. 16, 2020 (GLOBE NEWSWIRE) -- AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today announced a strategic plan to access China’s capital markets in order to enhance its ability to support at scale the strong, expected demand for strategic compound semiconductor materials and to continue to elevate its business and manufacturing operations in support of Tier-1 customer requirements, as well as to replenish its cash with minimal dilution and further strengthen its financial structure. AXT plans to merge two of its raw material companies into its wafer manufacturing company in China, Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), subject to completion of definitive documentation and applicable laws. The two raw material companies, Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. (“BoYu”) and Nanjing JinMei Gallium Co., Ltd. (“JinMei”), and their related entities in China are performing well and add breadth of product diversity to Tongmei. AXT will seek to list shares of Tongmei on the Shanghai Stock Exchange’s Sci-Tech innovAtion boaRd (the “STAR Market”), an exchange intended to support innovative companies in China. The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Tongmei does not expect to accomplish this goal until mid-2022. The listing of Tongmei on China’s STAR market will not change the status of AXT, Inc. as a U.S. public company. It is a U.S. company, headquartered in Fremont, California. It will continue to be listed on the Nasdaq Global Select Market under the symbol AXTI. To qualify for a STAR Market listing, Tongmei is required to have multiple independent shareholders. The first major step in this process is engaging reputable private equity fi...