Altech Advanced Materials Rights Offer Update
Altech was formally advised by AAM on Monday morning 20 January 2020 (Central European time) (approximately 13:30 WST, Australia or 16:30 AEST - after ASX market close) that the Mannheim Local Court, Germany denied registration of the new shares that were to be issued from AAM's recently completed EUR2.0 million rights offer. The denial of registration was due to a technical issue (typing error), which in the opinion of AAM's advisers was not relevant, however the court refused registration of the new shares and consequently all funds have been returned to rights offer participants.
AAM has advised Altech that it will move quickly to re-commence the rights offer process, which will involve the lodgement of an updated prospectus with BaFin (the German financial regulator) and shareholder re-approval of the proposed capital increase consisting of a rights offer and subsequent external share placement. AAM will also proceed with its planned marketing roadshows in conjunction with Altech during the current quarter.
About Altech Chemicals Ltd
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 Ltd