AAM AG Recommences its Capital Increase Process
AAM AG Recommences its Capital Increase Process
Perth, Feb 5, 2020 AEST (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is pleased to announce that it has been advised by Frankfurt Stock Exchange listed Altech Advanced Materials AG (FRA:AMA1) (AAM), that AAM has recommenced its capital increase process with the scheduling of a shareholder meeting in Heidelberg, Germany on 12 March 2020.

The capital increase that is being put to AAM shareholders for approval is comparable to the process that was previously approved. The process comprises:

- submission of an updated prospectus to BaFin (German Federal Financial Supervisory Authority);

- approval of shareholders to issue 63,102,080 new AAM shares, which would raise EUR69.4 million at EUR1.10 per new share fully subscribed. The approved capital increase would be valid for 6 months;

- initially a 1:40 rights offer to existing shareholders (each AAM share currently owned gives the holder the right to subscribe to forty new AAM shares), with each new share priced at EUR1.10 per share;

- placement of any remaining unsubscribed new shares to investors (including existing shareholders) at a target price of EUR1.20 per share, with the ability to place and register these shares in multiple tranches;

As well as the capital increase, shareholders will be requested to approve: (a) authorised capital of EUR10,000,000 and conditional capital of EUR785,000, each of which may be utilised at the discretion of the AAM supervisory board for a period of up to approximately 5 years (until 1 March 2025) to raise additional new funds; (b) the move of AAM's registration of office from the jurisdiction of Mannheim to Frankfurt, which has more exposure to public company shareholder matters; and c) the election of Mr Wilko Stark to the AAM supervisory board. Most recently, Mr. Stark was divisional director at Mercedes-Benz Cars Purchasing and Supplier Quality and CEO of CASE (Connectivity, Autonomous Driving, Shared mobility, Electromobility) and the product group electric vehicles Mercedes-Benz EQ.

About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech 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.



Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320
Email: hoffmann@soarfinancial.com

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