Altech - $2m Deferred Placement Funds Rec'd (Appendix 3B)
- $2 million share placement funds received from Melewar Group
- Follows re-approval by shareholders at 14 November 2019 AGM
- Melewar remains the Company's second largest shareholder at 9%
- Shares have now been allotted
As a related party by virtue of Tunku Yaacob Khyra's position as a non-executive director on the board of Altech, approval of Company shareholders was required for Melewar to participate in the April 2019 share placement. Shareholder approval was originally obtained at a General Meeting of the Company on 6 June 2019, and was valid for a period of 30 days.
Due to various administration issues, Melewar was unable to remit the settlement funds within the prescribed period which resulted in a second approval for its participation in the share placement being required. Rather than convene a shareholder meeting for the sole-purpose of re-approving Melewar's participation in the share placement in September 2019, the Company decided to include a resolution at its Annual General Meeting (AGM) of shareholders, which was held last Thursday - 14 November 2019. At the AGM, shareholders overwhelmingly re-approved Melewar's participation in the share placement, and as a result Melewar has promptly remitted the settlement funds to the Company.
Melewar remains the 2nd largest holder of Company shares with a holding of 9.12%, the largest holder of Company shares is Deutsch Balaton AG / Dephi, with 15.8%.
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