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Altech Chemicals recommences European capital raising process through AAM AG for HPA plant

The company aims to be one of the world's leading suppliers of 99.99% high purity alumina through construction and operation of a 4,500 tonnes per annum processing plant in Malaysia.

Altech Chemicals Ltd - Altech Chemicals announces capital increase in its Malaysian high purity alumina project
The AAM AG shareholder meeting in Germany is scheduled for March 12, 2020

Altech Chemicals Ltd ASX:ATC) has kicked off 2020 with ongoing construction of its high purity alumina processing plant in Malaysia which is expected to be supported by Frankfurt-listed Altech Advanced Materials AG (AAM) (FRA:AMA1) recommencing its capital-raising process.

In July 2019 Altech announced the sale of an option to AAM, previously listed as Youbisheng Green Paper AG, whereby AAM can acquire up to a 49% interest in Altech’s project for US$100 million.

A key step in recommencing the capital raising will be a shareholder meeting in Heidelberg, Germany, on March 12, 2020, to exercise its option, which is expected to be a catalyst for project financial close.

Next steps

The first step in the capital increase process for AAM is submitting an updated prospectus to the German federal financial supervisory authority.

AAM will then need the approval of shareholders to issue 63,102,080 new AAM shares, which would raise €69.4 million at €1.10 per new share fully subscribed (with the approved capital increase valid for six months).

Initially, a 1:40 rights offer will be extended to existing shareholders (with each AAM share currently owned giving the holder the right to subscribe to 40 new AAM shares), with each new share priced at €1.10.

Additionally, there will be a placement of any remaining unsubscribed new shares to investors (including existing shareholders) at a target price of €1.20 per share, with the ability to place and register these shares in multiple tranches.

Additional approval needed

Shareholders will also be requested to approve authorised capital of €10 million and conditional capital of €785,000 which may be used at the discretion of the AAM supervisory board for a period of up to five years to raise additional new funds.

The meeting will also seek to approve the move of AAM’s registration of office from the jurisdiction of Mannheim to Frankfurt as well as the election of Wilko Stark to the AAM supervisory board.

Most recently, Stark was divisional director at Mercedes-Benz Cars Purchasing and Supplier Quality and CEO of CASE (Connectivity, Autonomous Driving, Shared mobility, Electromobility) and the product group electric vehicles Mercedes-Benz EQ.

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