- Altech Chemicals (ATC) has signed a collaboration agreement with leading silicon producer Silicon Ferrosolar
- The companies will work together to develop a high capacity, long cycle life silicon active material for use in lithium-ion batteries
- Altech is currently developing a coating technology which improves the performance, longevity and safety of batteries
- The agreement will run for one year and if any party chooses to terminate 30 days notice must be given
- Altech also launched a $14.5 million entitlement offer
- Shareholders will receive two new shares for every five held, as well as one free attaching option for every two new shares subscribed for
- The money will be used for Altech’s European initiative, payments for stage two work, development activities, working capital, and corporate costs
- Altech is down 11.2 per cent on the market, with shares trading for 4.4 cents each
Altech Chemicals (ATC) has signed a collaboration agreement with leading silicon producer Silicon Ferrosolar.
This agreement will see both companies work together to develop a high capacity, long cycle life silicon active material for lithium-ion (li-ion) batteries.
Silicon Ferrosolar has the technology to produce high purity silicon and is developing tailor-made silicon powders for li-ion battery anodes.
Under the agreement, Altech could potentially use its high purity alumina (HPA) and coating technology to coat particles designed by Silicon Ferrosolar.
Altech is currently developing Anode Grade HPA and coating technology to apply to particles used in li-ion batteries. This coating improves the performance, longevity and safety of batteries.
Additionally, Altech will fund the testwork and supply the coating technology.
The agreement will run for one year and if any party chooses to terminate, 30 days notice must be given.
Entitlement offer
Altech also launched a $14.5 million partially underwritten non-renounceable pro-rata entitlement offer.
Shareholders will receive two new shares for every five held as well as one free attaching option for every two new shares subscribed for.
The shares will be priced at 4 cents each, which represents an 18 per cent discount to Altech’s closing price on November 5 of 4.9 cents, and a 15 per cent discount to the five-day volume-weighted average price.
Further, the options are exercisable at 8 cents with expiry on May 31, 2022.
Altech’s major shareholders, Deutsche Balaton and Delphi and Melewar, have agreed to subscribe to 52 per cent of the offer, $7.6 million.
The money will be used for Altech’s European initiative, as well as to cover payments for stage two work, development activities, working capital, and corporate costs.
Altech is down 11.2 per cent on the market, with shares trading for 4.4 cents each at 2:13 pm AEDT.