Altech Chemicals have announced the successful completion of an $18 million share placement.
Two German investors, Deutsche Balaton and Delphi, will subscribe to $5.425 million worth of new shares and existing shareholders, SMS Investments and Melewar Group, have subscribed to $2 million worth of new shares.
The money raised will be used for the commencement of stage two of the engineering and construction at its high-purity, alumina plant in Malaysia.
Stage two engineering and construction works will include third party and supplier engineering, advancing civil loads and advancing stage one.
Stage one consisted of the construction of various buildings such as construction offices, vehicle wash down bays and security posts.
Shares will be issued at $0.1085 per share which is a discount of 16.5 percent that is currently on the ASX.
Placement shares will be issued in two phases with the first phase including $15.5 million shares being issued.
The second phase, to Melewar Group, will be subject to shareholder approval at the general meeting of shareholders planned for 30 May 2019.
Altech managing director Iggy Tan is pleased with the support that has been received.
“The company is extremely pleased with the support that it has received for the placement. We are delighted to welcome German strategic investors’ which will have a combined 13.6 percent shareholding in the company once the placement is complete,” he said.