Altech Chemicals Ltd (ASX:ATC) Altech Advanced Material Capital Increase Approved

Perth, Australia, Mar 13, 2020 - (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (HAM:A3Y) is pleased to announce that it has been advised by Frankfurt Stock Exchange listed Altech Advanced Materials AG (HAM:AMA1) (AAM) that its proposed capital increase has been approved by shareholders, at a shareholder meeting held in Heidelberg, Germany on 12 March 2020.

The approval provides for AAM to issue up to 63,102,080 new shares at a minimum price of EUR1.10 per share, which would raise EUR69.4 million fully subscribed. The capital increase will be implemented as follows:

- firstly, the new shares will be offered to AAM's existing shareholders at a ratio of 1:40, i.e. for each 1 existing share held the holder is entitled to subscribe to 40 new shares, at a subscription price of EUR1.10 per share (Rights Offer);

- any new shares not subscribed in the Rights Offer (the "oversubscription shares") may then be subscribed at EUR1.10 per share by shareholders that took up all of their entitlement under the Rights Offer; then

- any remaining unsubscribed shares can then be placed by AAM, at least at the issue price of EUR1.10 but aiming at a price of EUR1.20 or higher per share.

AAM has a period of 6-months in which to implement the capital increase.

The Rights Offer is scheduled to conclude by 30 April 2020, and will commence following approval by BaFin (German Federal Financial Supervisory Authority) of an updated AAM prospectus which has been submitted to BaFin. Approval of the prospectus is expected in early April 2020. AAM is supported by a global Swiss investment bank as placement agent for the planned private placement, to follow the Rights Offer.

In addition to the capital increase, AMM shareholders also approved the following items at the extraordinary general meeting:

(a) an additional authorised capital increase of EUR10,000,000 plus a conditional capital increase of EUR785,000, each of which may be utilised at the discretion of the AAM supervisory board for a period of up to approximately 5 years (until 1 March 2025) to raise funds in addition to what is raised in the capital increase;

(b) the election of Mr Wilko Stark to the AAM Supervisory Board; and

(c) relocation of AAM's registration of office from the jurisdiction of Manheim to Frankfurt am Main (Frankfurt), which has more exposure to public company shareholder matters.

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 (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:

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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