SMS group is still committed to contribute A$13 million of additional equity at project financial close. A number of professional and sophisticated investors also supported the placement.
Proceeds from the placement will be applied towards the commencement of Stage 2 engineering and construction of the Company's high purity alumina (HPA) plant in Johor, Malaysia, and for administration and working capital purposes. Petra Capital was the lead broker for the placement.
In Johor, Stage 2 engineering and construction works will include: third party and supplier engineering; advancing various civil loads in the plant; and advancing current Stage 1 activities.
Altech is continuing with its strategy of running the construction of the HPA plant in parallel with project financial close, thereby ensuring that project momentum is maintained. The placement shares were issued at a price of $0.1085 per share, which represents a 16.5% discount to the price of the Company's shares as traded on the ASX at the close of trade on 11 April 2019 (prior to the pre-placement trading halt).
Key participants in the share placement were:
Delphi Unternehmensberatung AG: A$ 5.425 million
Deutsche Balaton AG: A$ 5.425 million
Melewar Group: A$ 2.00 million
SMS Investments: A$ 2.00 million
Total for key participants A$ 14.85 million
The Company was extremely pleased with the support that it received for the share placement and is delighted to welcome German strategic investors Deutsche Balaton and Delphi which will have a combined 13.6% shareholding in the Company once the placement is fully complete.
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About Altech Chemicals Ltd
Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).
HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.
Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.
Altech Chemicals Limited
Altech Chemicals Limited
Investor Relations (Europe)
Soar Financial Partners