Altech Chemicals Ltd (ATC.AX) Update on Proposed Capital Raise
Perth, Australia, Nov 6, 2020 - (ABN Newswire) - Further to the request of Altech Chemicals Limited (ASX:ATC) (HAM:A3Y) for the trading of its securities to be halted by ASX this morning pending the release on an announcement regarding a capital raise, the Company is pleased to provide the following update.
Altech is proposing a non-renounceable pro-rata entitlement offer whereby existing shareholders eligible to participate in the offer may subscribe for two (2) new shares for every five (5) Altech shares held, at an issue price of AU$0.04 per new share, together with one (1) free attaching option (at an exercise price of AU$0.08 per share and an expiry date of 31 May 2022) for each two (2) new shares acquired (the Offer).
The Company is in the process of finalising the Prospectus for the Offer, which it expects to lodge with ASIC on Monday 9 November 2020.
Full details of the Offer, including the timetable, underwriting arrangements and shareholder eligibility are expected to be announced to the ASX pre-market Tuesday 10 November 2020, at which time the Company also expects to request that the ASX remove the trading halt for its securities.
About Altech Chemicals Ltd:
Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.
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. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.
Altech Chemicals Limited
Altech Chemicals Limited
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Altech Chemicals Ltd
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