Bluechiip Ltd Raises $3.425 Million From Rights Issue And Placement

Melbourne, July 5, 2017 AEST (ABN Newswire) - Bluechiip Ltd (ASX:BCT), a leader in the development of sample tracking technology for harsh environments, today announced that its pro rata 1-for-3 nonrenounceable rights issue (Rights Issue) at an issue price of $0.028 per ordinary share and its associated Top-Up Facility to raise up to $2.53 million (before costs) successfully closed on 30 June 2017. The Company also announces that it has raised an additional $885,000 via placement to sophisticated and professional investors.

Highlights

- Total capital raised $3.425 million;

- Rights Issue acceptances (including acceptances under the Top-Up facility) raises $719,415. The balance of the Rights Issue shortfall (approx. $1.81 million) has been placed with sophisticated and professional investors;

- Private placement with sophisticated and professional investors at $0.028 per ordinary share raising a minimum of $885,000.

Effect of Rights Issue on Capital Structure and Shortfall Notification

Event                        Number of Shares 

Shares currently on issue       271,810,092 

Maximum shares offered 
under Rights Issue               90,615,283 

Entitlement shares applied for 
by eligible holders under 
Rights Issue                     21,413,873 

Shares applied for by eligible 
shareholders under the 
Top-Up Facility                   4,279,534 

Rights Issue shortfall shares 
placed with sophisticated 
and professional investors       64,921,876 

The Company will issue and allot all entitlement and shortfall shares applied for by current shareholders in line with the current rights issue timetable, and will apply to ASX for quotation of these shares.

The directors took up their entitlements under the Rights Issue and, in addition, the Chairman committed to subscribe for an additional 8,928,571 shortfall shares ($250,000). The issue of these shares will be subject to shareholder approval, which will be sought at the Company's 2017 AGM.

Settlement of the issue of the balance of the shortfall and placement shares is expected to be finalised next week.

Mr Iain Kirkwood, Bluechiip's Chairman, said: "This capital raising was well supported and represents a significant and pivotal milestone for the Company. The Board thanks all shareholders who took up their entitlements and is very pleased to welcome a number of significant, new shareholders onto our register."

Mr Andrew McLellan, Bluechiip's Managing Director and CEO, said: "The injection of these funds, after costs, which were kept to a minimum, provides the necessary working capital to supply and build the sales pipeline in FY18 and beyond. As announced on 21 June, we have started shipping products to our first OEM customer in the USA and we expect revenues to accelerate significantly in FY18."


About Bluechiip Ltd

Founded in 2003 and ASX listed in 2011, Bluechiip Ltd (ASX:BCT) has its head office in Melbourne, Australia and distribution channels around the globe.

Bluechiip's unique and patented technology combines secure wireless sample tracking with integrated temperature reading for use in extreme environments, working reliably in temperatures from -196DEG C to +200DEG C, and impervious to autoclaving, gamma irradiation sterilization, humidification, centrifuging, cryogenic storage and frosting.

Based on MEMS technology, the Bluechiip(R) tag contains no electronics. Unlike traditional tracking technology like labels, barcodes or RFID, Bluechiip does not require line-of-sight visibility for temperature readings and tracking, and so can be read through frost without damaging the sample.

The tag can either be embedded or manufactured into storage products such as vials or bags. Easy identification, along with any associated information from the tag can be detected by a reader, which can also sense the temperature of the tagged items. Unlike other tracking methods, the Bluechiip(R) technology can sense the temperature of each item a tag is attached to or embedded in.

This technology is particularly important for industries such as the $2b biopreservation and cryopreservation market, which processes more than 300 million samples per year of tissue, blood, serum, plasma, etc., for industries such as pharmaceuticals, IVF, research and clinical trials. It also has applications in cold chain logistics, food, manufacturing, security and defence.

Further information is available at http://www.bluechiip.com