Altech Chemicals Ltd (ASX:ATC) $14.5 million Underwritten Entitlement Offer

Perth, Australia, Nov 11, 2020 - (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (HAM:A3Y) is pleased to announce the launch of a $14.5 million partially underwritten non-renounceable pro-rata entitlement offer on the basis of two (2) new shares at $0.04 each for every five (5) shares held by Altech shareholders at the Record Date, plus one free attaching option for each two (2) new shares subscribed and issued (exercise price $0.08, expiry 31 May 2022) to raise up to $14.5 million before costs (Offer). ASX quotation will be sought for the options.

The Offer is open to all eligible Altech shareholders that have a registered address in Australia, New Zealand, Hong Kong, Malaysia, Singapore and Germany. The Offer will close on 7 December 2020 (unless extended in accordance with the ASX Listing Rules). Also, shareholders will be able to make application for new shares (and the attaching option) in addition to their pro-rata 2 for 5 entitlement, via a shortfall offer.

The Company's major shareholders have agreed to subscriptions for approximately 52% of the Offer ($7.6 million), via a combination of agreeing to take up their respective pro-rata entitlements to shares under the Offer, and/or underwriting any shortfall as summarised in the Table 1 in link below.

To view the timetable, please visit:
https://abnnewswire.net/lnk/18SE685G

About Altech Chemicals Ltd:

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

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. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.

Contact:

Corporate
Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: [phone]
Email: [e-mail]

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: [phone]
Email: [e-mail]

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: [phone]
Email: [e-mail]

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