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- Altech Chemicals (ATC) raises $8.1 million through an oversubscribed share placement
- The company also aims to raise an extra $4 million through a share purchase plan, which will allow eligible shareholders to subscribe for up to $30,000 worth of shares
- Overall, the money is being applied to the construction of a 10,000 tonnes per annum battery materials coating plant in Germany
- Specifically, the money will support construction and the completion of preliminary and definitive feasibility studies
- Company shares are down 10.7 per cent to trade at 12.5 cents
Altech Chemicals (ATC) has completed a share placement, which reportedly received strong demand and interest.
The placement raised $8.1 million through the issue of 76 million shares priced at 10.7 cents each, which marks a 24 per cent discount to the last closing price on November 29 of 14 cents.
Altech plans to use the money for its 75 per cent portion of funding for the construction of a battery materials coating plant in Saxony, Germany by Altech Industries Germany.
The money will also help to purchase land at the Schwarze Pumpe Industrial Park (the site in which the plant will be built), complete preliminary and definitive feasibility studies for the 10,000 tonnes per annum battery materials plant, and for working capital.
The pre-feasibility study is being undertaken by Altech and its 75 per cent-owned German subsidiary and is nearing completion.
In addition to the placement, the materials stock will launch a share purchase plan (SPP) to raise up to a further $4 million. Eligible shareholders may subscribe for up to $30,000 worth of shares at the same price as the placement shares. These additional funds will also support the development of the battery materials project.
The SPP will be open from December 6 until December 17 with shares to be issued on December 23.
Company shares were down 10.7 per cent to trade at 12.5 cents at 2:25 pm AEDT.
