Altech Batteries Ltd has inked an agreement with major shareholder Deutsche Balaton AG to draw down up to €2.5 million in cash funding – subject to shareholder approval – in the form of bearer bonds.
The company is also selling its land in Johor, Malaysia, to secure repayment of the bonds, which will be provided with interest payable at 7% per year.
ATC intends to hold a general meeting in late April to secure shareholder approval for the repayment and land sale.
Key terms of subscription agreement
The available funding from the new agreement will go to the ongoing development of the CERENERGY® battery project and the Silumina Anodes™ battery materials project, as well as to support general working capital requirements.
The agreement terms are as follows:
- Total Bearer Bond facility of up to €2.5 million to be drawdown in €500,000 amounts with interest payable at 7.0% per annum.
- Altech shareholders approving the grant of security to Deutsche Balaton AG over its Malaysian land in accordance with any requirement of the ASX, or the ASX granting a waiver from any requirement of the listing rules to obtain shareholder approval.
- a Security and Security Trust Agreement has been entered into under which Altech’s 100% owned subsidiary Altech Chemicals Sdn Bhd has pledged security over its Malaysian land as well as a guarantee of repayment of the Bearer Bonds.
- Repayment of Bearer Bonds by maturity date of October 31, 2026.
- Default clauses applicable standard for Subscription Deeds of this nature.
The company is positioning CERENERGY® batteries as an alternative to lithium-ion batteries, being fire and explosion proof, with a life span of more than 15 years and the ability to operate in extreme environments.
Commercialisation plans
Altech’s commercialisation strategy includes a joint venture with German government battery institute Fraunhofer IKTS, and plans to construct a 120 megawatt-hour (MWh) production facility in Germany for its CERENERGY® batteries.
Altech and its subsidiaries have also completed a definitive feasibility study for the Silumina Anodes™ battery materials project, involving an 8,000-tonne-per-annum silicon alumina coating plant in Germany to supply its Silumina Anodes product to the burgeoning European electric vehicle market.
Using high-capacity silicon in lithium-ion batteries, the company has achieved a 30% higher energy battery with improved cyclability and battery life, resulting in in smaller, lighter batteries with a smaller greenhouse gas footprint.