AXT raises private equity financing of up to $545m in Tongmei

AXT Inc of Fremont, CA, USA — which makes gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) substrates and raw materials at plants in China — says that its majority-owned China-based wafer manufacturing subsidiary Beijing Tongmei Xtal Technology Co Ltd has entered into definitive agreements for a private equity financing to fund further expansion of its manufacturing capacity for indium phosphide 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 RMB1,912,350,000 (about US$285m) and up to a maximum of RMB3,668,639,053.25 (about US$545m) in ordinary shares of Tongmei...