Perth, Australia, Dec 20, 2019 - (ABN Newswire) - Altech Chemicals Limited (ASX:ATC.AX - News) (HAM:A3Y.F - News) is pleased to provide an update on the capital raise process that was initiated by Altech Advanced Materials AG (AAM) on 3 December 2019 (refer to ASX announcement dated 2 December 2019 for details).
- AAM Rights Issue acceptance date extended to 10 January 2020
- Shareholder meeting convened to extend implementation timeframe for AAM Capital Increase by 3 months to 16 April 2020
Stage 1 of the AAM capital raise is a 40:1 rights offer, whereby all exiting AAM shareholders have the right to subscribe to 40 new AAM shares for each share they hold in AAM, at a price of EUR1.10 per new share. AAM has advised Altech that it has extended the acceptance date for this offer to 10 January 2020. The decision to extend was taken in response to a number of shareholders who advised AAM that their respective custodian banks had not informed them of the offer until just prior to the original acceptance close date, and that the late advice had not provided sufficient time for these shareholders to make their respective investment decision.
AAM has further advised Altech that it will convene a General Meeting of its shareholders on 15 January 2020, at which it will seek shareholder approval to extend by 3 months to 16 April 2020, the date by which AAM has to complete its proposed EUR69.4 million capital increase. AAM has stated that it is confident that it will receive shareholder approval for the revised date. The additional time will provide AAM a 3-month window after the 2019 Christmas/New Year period to promote Altech's HPA project and the investment opportunity to institutional investors for private placement, following on from the retail investor focussed Rights Issue.
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 Limited
Altech Chemicals Limited
Investor Relations (Europe)
Soar Financial Partners
Altech Chemicals Ltd
Copyright (C) 2019 ABN Newswire. All rights reserved.