Altech Chemicals Ltd (ASX:ATC) 25% Sale of Altech Industries Germany Finalised

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is pleased to announce that it has now finalised the sale of 25% of its German subsidiary, Altech Industries Germany GmbH (AIG), for EUR 5.0 million (~A$ 8.3 million) to Frankfurt Stock Exchange listed Altech Advanced Materials AG (AAM).

Highlights

- Sale of 25% of Altech's Germany subsidiary (AIG) finalised

- Acquired by Frankfurt Stock Exchange listed Altech Advanced Materials AG

- EUR5.0 million (A$8.3 million) payable over 3 years

- Initial EUR250,000 cash consideration received

- AIG has the right to use Altech's HPA manufacturing technology

On 26 October 2020, Altech announced that it had executed a Memorandum of Understanding (MOU) with AAM for AAM to acquire 25% of the shares of AIG for EUR5.0 million, with Altech to retain ownership of the remaining 75%. Consideration for the sale is structured as follows:

1. Initial Cash Consideration of EUR250,000 (~A$415,000) upon the signing of a Share Sale and Purchase Agreement and a Shareholder Agreement between Altech and AAM.

2. Deferred Consideration: of EUR4.75 million (~A$7.92 million), payable by AAM as: Three equal instalments of EUR1.583 million (~A$2.63 million) on each annual anniversary of the payment of the Initial Cash Consideration; Interest, paid quarterly to Altech at the rate of 3% p.a. (~A$240k p.a.) on the outstanding Deferred Consideration; AAM may pay the outstanding Deferred Consideration to Altech in full at any time without penalty; and The Deferred consideration will be secured via the pledge by AAM of the 6,250 AIG shares (25% of AIG) (i.e. should the Deferred Consideration not be paid in full by AAM at or before the third anniversary of the Initial Cash Consideration payment date, the AIG shares held by AAM will fall back to Altech and in addition all consideration paid by AAM will be retained by Altech).

3. AAM will proportionally participate in all future equity raises by AIG on the same terms as Altech for the purpose of funding AIG's working capital and envisaged business development activities, such as the exercise of its option to acquire industrial land at the Schwarze Pumpe Industrial Park, Saxony, Germany.

The Share Sale and Purchase Agreement and the Shareholder Agreement between Altech and AAM have both now been executed, and the Initial Cash Consideration of EUR 250,000 (~A$415,000) has been received by Altech.

To view the company structure post transaction, please visit:
https://abnnewswire.net/lnk/ASGGO0M1


About Altech Batteries Ltd

Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

    

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