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Altech Chemicals continues European fund raising with US$100 million subscription period to open

If successful the raise would position AAM to exercise its option to acquire up to a 49% interest in Altech’s high purity alumina (HPA) project.

Altech Chemicals Ltd - Altech Chemicals continues fund raising efforts to raise up to US$100 million
The first phase is a capital increase of up to €69.4 million

Altech Chemicals Ltd (ASX:ATC) has received confirmation from German corporate regulator BaFin of the approval for Altech Advanced Materials AG's (AAM) US$100 million capital raising prospectus.

As a result, subscriptions for AAM's capital raising will open on December 3 and close on December 16.

If successful the fundraising would position AAM to exercise its option to acquire up to a 49% increase in Altech’s high purity alumina (HPA) project.

As part of AAM’s funding strategy, AAM shareholders have approved the issue for up to 63,102,080 new shares which would raise €69.4 million fully subscribed at an issue price of €1.10 per share.

Capital increase details

AAM was required to prepare a capital increase prospectus which is now approved.  

The capital increase will be conducted in two phases with the first phase will be a 1:40 rights issue offer to current shareholders.

This will be followed by a placement of any remaining unsubscribed rights to external investors.

The process that AAM must now follow is:

  • Firstly, the new shares will be offered to AAM’s existing shareholders for subscription at a ratio of 1:40, ie for each 1 existing share the holder is entitled to subscribe to 40 new shares at a subscription price of €1.10 per share;
  • Any new shares not subscribed may then be subscribed by existing shareholders that have subscribed for all of the new shares to which they were entitled in accordance with their 1:40 subscription rights. The allocation of the oversubscription shares shall take place at least at the issue price of €1.10 per share; and
  • Any remaining unsubscribed shares can then be placed, at least at the issue price of €1.10 but aiming at a price of €1.20 per share or higher, to others that are currently not AAM shareholders.

Quick facts: Altech Chemicals Ltd

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ASX:ATC
Market: ASX
Market Cap: $75.4 m
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