Perth, Australia, Dec 5, 2019 - (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (ASX:ATC.AX - News) (HAM:A3Y.F - News) is pleased to announce the successful completion of an $1.8 million (before costs) share placement (Placement) and the initiation of a share purchase plan (SPP) whereby existing shareholders can apply for up to $30,000 of new Altech shares at the same price as the Placement participants.
- Successful $1.8 million share placement
- Initiation of a share purchase plan
- Eligible shareholders can purchase up to $30,000 of new Altech shares
The Placement and SPP shares will be issued at a price of 9.75 cents per share, representing a 15% discount to the price of the Company's shares as traded on the ASX at the close of trade on Monday 2 December 2019 and the 5-day VWAP.
The Placement was anchored by the Company's major shareholder Deutsche Balaton AG. The balance of the Placement was supported by a range of professional and sophisticated investors, many of whom are long-term holders of Altech shares. Proceeds from the Placement will be applied to the Company's project funding strategy, payments for Stage 2 engineering and construction activities at the Company's high purity alumina (HPA) plant in Johor, Malaysia, and for administration and working capital purposes.
The Placement shares will be issued in a single tranche under the Company's current share placement capacity pursuant to ASX Listing Rule 7.1A. Approximately 18,624,628 shares will be issued.
Share Purchase Plan
The share purchase plan (SPP) will be open to all existing Altech shareholders with a registered address in Australia or New Zealand, who were recorded on the Company's share register at 4 December 2019 (record date). Participation in the SPP is optional, however any shares purchased via the SPP will not incur any brokerage or other transaction costs. Based on the positive response from the last SPP the Company offered (August 2018), up to an additional $4.0 million could be raised from this SPP. Funds raised from the SPP will also be applied to the project funding strategy, payments for Stage 2 engineering and construction activities and for administration and working capital purposes. All new shares issued under the SPP will rank equally with existing ordinary shares of the Company.
The closing date for participation in the SPP will be Thursday 19 December 2019. Full details of the SPP and individual letters including acceptance forms will be published on the ASX and mailed to all eligible shareholders on Friday 6 December 2019.
To view the Timetable, please visit:
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
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Altech Chemicals Ltd
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