AXT Subsidiary Tongmei Secures Private Equity Financing Of Up To $545M To Expand Manufacturing Capacity For Indium Phosphide Semiconductor Substrates

AXT, Inc. (NASDAQ:AXTI), a leading manufacturer of compound semiconductor substrates, today announced that its majority-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd. ("Tongmei"), has entered into definitive agreements for a private equity financing to fund further expansion of its manufacturing capacity for indium phosphide semiconductor 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 RMB 1,912,350,000 (approximately US$285 million) and up to a maximum of RMB 3,668,639,053.25 (approximately US$545 million) (the "Maximum Amount") in the ordinary shares of Tongmei.