Altech Chemicals Limited (Altech/the Company) (
Next Step - AAM Equity Raise
At its 17 July 2019 shareholder meeting, AAM shareholders approved for the company to issue up to 63,102,080 of new shares, which would raise EUR69.4 million, fully subscribed, at the minimum subscription price of EUR1.10 per share.
The process that AAM is required to follow for the issue is:
- firstly, the new shares will be offered to AAM's existing shareholders for subscription at a ratio of 1:40 (1 existing share entitles to subscribe to 40 new shares), at a subscription price of EUR1.10 per share;
- any new shares not subscribed at the end of the initial subscription period (the "oversubscription shares") may then be subscribed by those existing shareholders that have subscribed for all of the new shares to which they were entitled in accordance with their 1:40 subscription rights. The allocation of the oversubscription shares shall take place at least at the issue price of EUR1.10 per share; and
- finally, any remaining unsubscribed new shares can then be placed, at least at the issue price of EUR1.10 but aiming at a price of EUR1.20 per share or higher, to others that are currently not AAM shareholders.
AAM has commenced drafting the required prospectus for the share issue, which Altech has been advised is expected to be lodged with the German regulator (BaFin - Federal Financial Supervisory Authority) next week.
An initial round of marketing roadshows for the issue is planned for Germany in September 2019 and this will include presentations and attendance at various investor conferences such as Herbstkonferenz (Frankfurt), Zurich Capital Markets Conference (ZKK) (Zurich), Edelmetallmesse (Munich) and the German Equity Forum (Frankfurt). It is currently expected that the issue will be initiated in mid-Q4, 2019.
Since the announcement by AAM of shareholder approval for the issue of 63,102,080 new shares, AAM shares, although thinly traded on the Frankfurt stock exchange, have risen in price from EUR1.30 per share (mid-June 2019) to a high of EUR4.50 per share on 29 July 2019. This is a positive response to the proposed new issue and the opportunity to invest in Altech's HPA project with a guaranteed year-6 buy-back and agreed rate of return.
AAM is in the process of aligning its corporate branding with that of Altech in anticipation of its status as HPA project joint venture partner. The brand changes will include AAM's corporate logo and website, which are close to being launched.
Altech managing director Iggy Tan said "we are very excited with the prospect of working with AAM on its European marketing campaign and implementing our German project equity strategy. As we have previously mentioned, Altech's German equity strategy does not preclude the other joint venture partner initiatives that are also underway, nor does it replace the mezzanine debt initiative that is progressing with Macquarie Bank."
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.
Contact
CorporateIggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com
Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com
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