Altech Chemicals Ltd (ASX:ATC) has soaked up the enthusiasm of existing shareholders who participated in its successful capital-raising.
The company received applications from existing shareholders for A$2.2 million of new shares, at an offer price of A$0.107 per share, under a share purchase plan (SPP).
This offer closed on December 17 and the new shares are expected to be distributed on Thursday.
Positive response
The response to the SPP from shareholders was very positive and all applications have been accepted in full. The funds raised by this SPP will join the A$8.1 million share placement announced on December 2.
“In excess of 250 shareholders participated, which is an excellent outcome, especially considering the timing of the SPP just prior to the Christmas and New Year period,” Altech managing director Iggy Tan said.
Funds for battery materials development
On the back of this injection of funds, Altech is well funded to advance its battery materials development.
Proceeds from the SPP, together with funds raised from the recent placement, will be plunged into the construction of a battery materials coating plant in Germany by the company’s 75%-owned subsidiary Altech Industries Germany.
The company will also use the capital to purchase land at the Schwarze Pumpe Industrial Park in Saxony, Germany, complete a preliminary feasibility study for the construction of a 10,000 tonnes per annum battery materials plant and finalise a definitive feasibility study for the construction of a battery materials plant.