Perth, May 8, 2017 AEST (ABN Newswire) - Altech Chemicals Limited (ASX:ATC), (FRA:A3Y) ACN 125 301 206 (Altech or the Company) recently announced a $2.0 million placement of shares to existing cornerstone shareholder MAA Group Berhad.

Altech would now like to offer to all existing eligible shareholders the opportunity to purchase additional shares in the Company at a 5% discount to the volume-weighted average price of Altech shares traded on the Australian Securities Exchange over the 5 days up to, and including, the day on which the SPP offer closes, rounded down to the nearest half-cent. Altech will announce the final issue price for the SPP shares after the offer closes.

The number of Shares issued to each shareholder will be determined by dividing the value of the shares applied for by the issue price. If this calculation produces a fractional number, the number of Shares issued will be rounded up to the nearest whole number. The maximum number of Shares that can be issued under the SPP in order to comply with ASX Listing Rules requirements is 79,856,493, which is 30% of the total number of the Company's ordinary shares on issue at the date of this Offer.

As an existing shareholder, you are invited to participate in a non-renounceable Share Purchase Plan (SPP), whereby you can subscribe for up to $15,000 of new fully paid ordinary shares in the Company (Shares), without any brokerage or transactions costs. Funds raised from the SPP will be applied to the completion of the detailed design and engineering of the Company's proposed Malaysian high purity alumina (HPA) plant and for general working capital purposes.

The Company last conducted an SPP in March 2016; at that time new Shares were offered at a price of 8.6 cents each. The performance of the Company's share price as traded on the Australian Securities Exchange over the preceding two years is illustrated in the chart (see the link below).

To be eligible to participate in the SPP, you were required to be registered as a holder of Shares, with a registered address in Australia and New Zealand as at 5pm Western Standard Time (WST) on Friday, 5 May 2017 (Record Date).

The offer of Shares under the SPP (Offer) opens on Tuesday, 9 May 2017 (Opening Date) and closes at 5.00pm WST on Wednesday, 31 May 2017 (Closing Date). No late applications will be accepted, however the directors of the Company (Directors) reserve the right to extend the Closing Date.

The purchase price for each Share under the Offer will be at a 5% discount to the volume-weighted average price of Altech shares traded on the Australian Securities Exchange over the 5 days up to, and including, the day on which the SPP offer closes, rounded down to the nearest half-cent.

If you are eligible to subscribe for Shares under the Offer and you wish to participate, you may subscribe for Shares as follows.
----------------------------------------------------------------------
                                      Subscription Amount ($A)
Offer A                               $15,000 (maximum)
Offer B                               $10,000
Offer C                               $5,000
Offer D                               $2,500
Offer E                               $1,000  (minimum) 
----------------------------------------------------------------------
You may only subscribe for Shares in the tranches stated above. The Company reserves the right to allot fewer Shares than an eligible shareholder applies for under the Offer, or no Shares and any determination by the Directors in respect of any scaling back will be final. If a scale back occurs, the Company will refund any excess application money to eligible shareholders (without interest).

In the event the Company wishes to allot fewer Shares than an eligible shareholder applies for, the allocation of Shares to applicant Shareholders will be at the absolute discretion of the Directors from time to time.

To view the terms and conditions, please visit:
http://abnnewswire.net/lnk/6455G773


About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

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.

    


Contact

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: shane@altechchemicals.com



Related Companies

Altech Chemicals Ltd    

ABN Newswire This Page Viewed:  (Last 7 Days: 76) (Last 30 Days: 354) (Since Published: 980) 
ANALYTICS: LOGIN HERE

Altech Chemicals Ltd NEWS: RECENT VISITS (11346)

Research Report

Social Media