Altech Chemicals Ltd (ASX:ATC) has raised $8.1 million before costs through an oversubscribed share placement and has initiated a share purchase plan (SPP) to raise up to $4 million.
The company-led placement without a lead broker attracted strong demand and interest, providing validation of Altech's strategy and allowing the next stage of its battery materials development
A subsequent SPP will allow existing shareholders to apply for up to $30,000 of new Altech shares at the same price as the placement.
Issued at $0.107 per share, this represents a 24% discount to the price of the company’s shares at the close of trading on Monday, November 29, 2021.
Placement shares will be issued in a single tranche under the company’s existing share placement capacity, constituting approximately 76 million shares.
Use of funds
The proceeds from Altech’s fundraising efforts will be used to cover the company’s 75% share of funding for the construction of a battery materials coating pilot plant in Germany by Altech Industries Germany GmbH.
The funds will also be used to purchase land at the Schwarze Pumpe Industrial Park, fund the completion of a preliminary feasibility study (PFS) for the battery materials plant – expected to produce 10,000 tonnes per annum – and then a definitive feasibility study (DFS) for the same plant.
Share purchase plan
The share purchase plan 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 November 29, 2021.
Participation in the SPP is optional, however, any shares purchased via the SPP will not incur any brokerage or other transaction costs.
Based on positive responses to previous SPPs, Altech believes an additional $4 million could be raised from this purchase plan.
The closing date for participation in the SPP will be Friday, December 17, 2021. Full details of the SPP and individual letters including acceptance forms will be mailed to all eligible shareholders on Monday, December 6, 2021.
About Altech Chemicals
Altech Chemicals is a specialty alumina technology and production company that has finalised Stage 1 and Stage 2 construction of its high purity alumina (HPA) plant in Johor, Malaysia, and continues with innovative research and development of its downstream alumina coating technology used to improve the battery life and performance in lithium-ion batteries.
Altech recently 'cracked the silicon barrier' with its innovative use of nanotechnology, successfully combined silicon particles – that had been treated with its innovative proprietary technology – with regular battery-grade graphite to produce a lithium-ion battery electrode containing a composite graphite-silicon anode.
The company’s battery anodes now have approximately 30% higher retention capacity compared to conventional lithium-ion battery anode materials.