Altech Chemicals Ltd (ASX:ATC), through Altech Advanced Materials AG (AAM), has raised €2 million predominantly from existing retail shareholders from a 40:1 rights offer within stage-1 of its capital raise.
On January 17, 2020, AAM announced that stage-1, a 40:1 rights offer to existing shareholders at a price of €1.10 per new share, had resulted in subscriptions for approximately €2.0 million of new shares and had been registered on January 16, 2020.
In line with expectations
As AAM had approximately 1.5 million shares on issue, and approximately 100 predominantly retail shareholders eligible to participate in the rights offer, funds raised via the offer were in line with company expectations.
The company had anticipated that the next phase of its capital increase could proceed using the prospectus that was prepared for the 40:1 rights offer, subject to shareholder approval at its January 15 Extraordinary General Meeting (EGM).
However, on January 10 AAM was advised by the Mannheim Local Court that the court would not support the proposed extension deadline.
An updated prospectus is therefore required for lodgement with BaFin in conjunction with shareholder re-approval of the capital increase for the Stage 2 (external parties) fundraising.
AAM has advised Altech that at this point in time it does not anticipate that the preparation of an updated prospectus or the convening of another shareholder EGM will result in a delay in the timeframe for the planned stage-2 capital raise.
AAM in conjunction with Altech will be conducting marketing roadshows in Europe during this quarter.