Altech Chemicals Ltd (ASX:ATC) Controlled Placement Agreement Share Issue

Perth, Australia, May 1, 2020 - (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (HAM:A3Y) announces its first utilisation of the Controlled Placement Agreement (CPA) established with Acuity Capital (Acuity) on 27 February 2020.

Highlights

- $300,000 utilisation of Controlled Placement Agreement

- 6,665,000 shares issued at $0.045 per share

- Issue price above the closing price of ATC shares on 1 May 2020

Altech has raised $300,000 (net of costs) under this initial CPA utilisation via the issue of 6,665,000 fully paid ordinary shares to Acuity. The shares were issued at a price of $0.045 per share, which is slightly above the closing price of the Company's shares as traded on the ASX today, and is a 13% discount to the 15-day VWAP of $0.051 per share to the close of trade today. The share issue to Acuity has been made under the Company's ASX Listing Rule 7.1A placement capacity. Funds raised will be applied to corporate costs, including the Company's ongoing European initiatives.

In addition, the Company has issued 264,914 fully paid ordinary shares under its ASX Listing Rule 7.1 placement capacity, to a consulting group for various services rendered.

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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