Successful A$17 Million Share Placement
Perth, Oct 27, 2017 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (
ASX:ATC) (A3Y:FRA) is pleased to announce that it has received commitments to raise $17.2 million (before costs) through the placement of ~122.9 million fully paid ordinary shares at an issue price of $0.14 per share (the Placement) to continue the development of its high purity alumina (HPA) project.
Highlights
- Successful A$17 million share placement
- US$4.0 million (~A$5.1 million) commitment from German engineering firm SMS group
- A$3.0 million commitment from Melewar Group
- Significant demonstration of confidence in Altech and its HPA project
The Placement was corner-stoned by German engineering firm SMS group GmbH (SMS) with a US$4.0 million (A$5.1 million) commitment, and an A$3.0 million commitment from entities associated with Altech nonexecutive director Tunku Yaacob Khyra (Melewar Group).
The issue price of $0.14 per share represents a 17% discount to the 15-day volume weighted average price (VWAP) of the Company's shares as traded on the ASX to the close of trade on Friday, 20 October 2017. The issue of Placement shares to Melewar Group and SMS will be subject to shareholder approval at the Company's annual general meeting to be held on Thursday, 30 November 2017. All other Placement shares will be issued from the Company's share placement capacity under ASX Listing Rules 7.1 (44,118,337 shares) and 7.1A. (21,824,224 shares).
Proceeds from the Placement will be used to continue the development of the Company's HPA project. This will include payments for land at Meckering, Western Australia and Johor, Malaysia; detailed engineering design; working capital and general corporate purposes.
Commenting on the cornerstone equity investors' support, Altech managing director Mr Iggy Tan said, "The Company very much welcomes the direct investment by SMS in Altech; it strongly demonstrates their commitment and confidence as EPC contractor to the project. The ongoing support of Melewar Group is equally important; the group has supported the Company since 2015 and is a strong believer of our HPA project and the construction of the high purity alumina plant in Malaysia. The Placement leaves us well capitalised to complete the optimal funding arrangements for the HPA project in 2018", he said.
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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