Altech Batteries Ltd (ASX:ATC) has achieved its objective of gaining exposure to the Frankfurt capital market, having received the first two instalments of deferred consideration from Altech Advanced Materials AG (AAM) in return for a 25% interest in Altech’s subsidiary Altech Industries Germany GmbH (AIG).
ATC received an initial cash consideration of $250,000 upon the initial signing of the agreement in December 2020.
Having received the first tranche of $5.12 million, ATC expects the second and final payment of $2.5 million in December 2023.
In December 2020 Altech sold the 25% interest in AIG to its Frankfurt Stock Exchange-listed subsidiary, AAM, which recently completed a successful fundraising effort on the German bourse.
Establishing German ownership
“The original objective of establishing AAM on the Frankfurt Stock Exchange in the first place was to attract investment from the European market and establish some local German ownership and presence in our projects,” Altech Batteries managing director Iggy Tan said.
“AAM has completed a very successful fundraising program which will support their 25% of the Silumina Anode and Cerenergy Battery projects.”
Read: Altech Chemicals makes strong progress with Silumina Anodes™ pilot plant construction in Germany
Altech Batteries’ corporate structure.
Read: Altech Batteries completes name change; retains ASX ticker