$2 Million Share Placement to Cornerstone Investor
- A$2 million raised via share placement to existing cornerstone investor
- Placement priced at $0.14 per share, an 8% premium
- Existing Malaysian shareholder MAA Group Berhad
- Funds applied to detailed design and engineering
The Placement shares will be issued at 14 cents per share, which represents an ~8% premium to the 12 April 2017 closing price of the Company's shares as traded on the Australian Securities Exchange (ASX).
Funds raised from the Placement will be applied to the completion of detailed design and engineering of the Company's proposed Malaysian high purity alumina (HPA) plant.
MAAG is a Malaysian publicly listed insurance, investment, credit and finance group and is an existing shareholder of Altech. Altech non-executive director, Tunku Yaacob Khyra is the executive chairman and majority shareholder of MAAG, consequently the placement shares to MAAG will be subject to the approval of Altech shareholders.
About Altech Chemicals Ltd
HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.
Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.
Altech Chemicals Ltd