- Share Purchase Plan (SPP) offered to eligible shareholders
- Follows a $2 million share placement to cornerstone shareholder MAA Group Berhad
- SPP offer priced at a 5% discount to the 5 day VWAP
- Funds applied to detailed design and engineering work
The SPP will enable existing eligible shareholders to purchase Altech shares at a 5% discount to the volume-weighted average price of its shares as traded on the Australian Securities Exchange over the 5 days up to, and including, the day on which the SPP offer closes. Altech will announce the final issue price for the SPP shares after the offer closes.
Existing eligible shareholders of Altech will have the opportunity to subscribe to a maximum of $15,000 of new shares and a minimum amount of $1,000 of new shares, via the SPP.
Funds raised from the SPP will be applied to the completion of the detailed design and engineering work for the Company's proposed Malaysian high purity alumina (HPA) plant and for corporate and general working capital purposes.
Under the SPP rules, existing shareholders who are recorded on the share register at 5 May 2017 (record date) with a registered address in Australia or New Zealand will be eligible to participate. Each eligible shareholder will be entitled to apply for up to $15,000 of new fully paid ordinary shares of the Company without incurring any brokerage or other transaction costs. All new shares issued under the SPP will rank equally with existing ordinary shares of the Company.
The closing date for participation in the SPP will be Wednesday 31 May 2017.
Full details of the SPP will be announced later this afternoon and individual letters including acceptance forms will be mailed to all eligible 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