Altech Chemicals Ltd (ASX:ATC) shareholders have demonstrated their faith in the company’s high purity alumina (HPA) strategy by raising $4.3 million in a share placement plan (SPP).
This adds to the $17 million raised recently in a placement to institutional and professional investors.
READ: Altech Chemicals to follow $17 million placement with share purchase plan
Funds will be used to advance the company’s HPA strategy for which construction of a plant in Johor, Malaysia is about to start.
Altech’’ managing director Iggy Tan said: “The company is extremely pleased with the number of applications for new shares that it received from shareholders under the SPP.
“In excess of 550 shareholders, representing approximately 20% of all shareholders, participated which is an exceptional outcome.
“Project momentum is growing rapidly, the site for our HPA plant has now been cleared and the stage-I construction agreement was recently signed, which will see works in Johor commence shortly.”
Response exceeds expectations
Existing shareholders were invited to participate in the SPP at a price of 16.5 cents per share with the company originally hoping to raise $3 million.
The response exceeded expectations and all applications will be accepted in full with the new shares to be allotted on Monday, August 6, 2018.
READ: Altech Chemicals executes stage I construction agreement for Malaysian HPA plant
Funds from the SPP and placement will be used to finalise the detailed design of the plant, prepare the site for construction, commence site works and order long lead-time plant and equipment.
Altech is equity funding the first stage to maintain project momentum, with the works being conducted concurrently with project finance close.