Security Purchase Plan
The indicative and non-binding mezzanine debt term sheet (currently progressing through due diligence) is for a facility amount of up to US$90 million and throughout this year the Company has focussed on managing the due diligence process. Macquarie appointed an independent technical advisor, Worley Parson, to conduct the project technical review which was completed over a period of 6 months and concluded with a positive report on the project and processing flowsheet.
Following the technical review Macquarie appointed CRU, a London commodities research house, to conduct a HPA market review. This detailed investigation into the HPA market took 3 months and the results showed significant growth expected for HPA demand and a near term supply deficit.
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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