AXT subsidiary Tongmei signs deal for up to RMB 3.67 billion in private equity financing
AXTI•AXT subsidiary Tongmei signed agreements to raise up to RMB 3.67 billion (about US$545 million), with a minimum investment of RMB 1.91 billion. The proceeds will support capacity expansion, broader operations and working capital.
1. Financing terms
Tongmei signed agreements for private equity financing through ordinary shares, with a minimum investment of RMB 1.91 billion and a maximum of RMB 3.67 billion. Proceeds will fund indium phosphide substrate capacity expansion, broader operations and working capital, including capacity increases at Chinese raw material companies. Closing is expected in December 2026, subject to customary conditions, including required government filings. At the maximum investment, AXT expects to retain a 73.4% stake in Tongmei and continue financial consolidation.
