AAM AG Executes Placement Agent Agreement
The AAM announcement is as follows:
"Altech Advanced Materials AG ("AAM") is pleased to announce that an engagement agreement has been executed between AAM and a Swiss international Investment Bank. AAM commenced working with the bank during the last quarter to reach agreement on the scope of the engagement, conduct due diligence and satisfy the bank's KYC (know your client) requirements.
The engagement is for the bank to act as Placement Agent in relation to the issuance of equity or other equity instruments (securities) by AAM via private placement, which will be scheduled to follow the planned re-introduction of the rights offer to existing AAM shareholders.
In addition, the bank is mandated to assist with the structuring of any transactions including the preparation of a timetable and the determination of the appropriate transaction structure. The bank is compiling an initial list of potential investors and approaching them with the project financing opportunity, in preparation for road-show presentations by AAM and ASX listed Altech Chemicals Limited ("Altech")."
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