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    ATC   AU000000ATC9


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Altech Chemicals : - Share Purchase Plan

12/05/2021 | 05:32pm EST

For personal use only



Altech Chemicals Limited

Suite 8, 295 Rokeby Road,

Telephone:+61 8 6168 1555


Subiaco, Western Australia


ABN 45 125 301 206

6008 Australia

Website: www.altechchemicals.com

For personal use only

6 December 2021

Dear Fellow Shareholder,


It is a great pleasure to invite you to participate in the Company's December 2021 Share Purchase Plan (SPP).

Altech Chemicals Limited (ASX: ATC, "Altech" or "Company") has recently completed a placement that was conducted in-house. The Company is pleased to advise shareholders that it raised a total amount under the placement of $8,128,506 via the issue of 77,414,345 fully paid shares at 10.7 cents per share.

The Company will utilise the placement funds, and is seeking additional funds pursuant to this SPP, to further develop its downstream alumina coated battery materials business which could be a game-changer for the electric vehicle battery market. Altech intends to allocate funds raised from the placement, as well as this SPP, to the acquisition of land to house a battery materials coating pilot plant in Germany, construction of the pilot plant, completion of a Preliminary Feasibility Study in relation to a 10,000 tpa battery materials coating plant to be housed on the same land in Germany as the pilot plant, and completion of a Definitive Feasibility Study in relation to the 10,000 tpa battery materials coating plant.

Altech's alumina coating technology is successful on both silicon and graphite particles, typical of those used in the anode of lithium-ion batteries, particularly within the burgeoning electric vehicle industry. This technology aims to improve the battery life and performance. On 25 November 2021, the Company announced a very exciting and significant breakthrough in lithium-ion battery technology achieved by its research and development laboratory located in Perth, Western Australia which was well received by the market. After almost 12 months of challenging work, Altech has finally "cracked the silicon barrier" and successfully produced and tested a series of lithium-ion battery anode materials that have ~30% higher retention capacity compared to conventional lithium- ion battery anode materials. To achieve its breakthrough, Altech successfully combined silicon particles that had been treated with its innovative proprietary technology, with regular battery grade graphite particles, to produce a lithium-ion battery electrode containing a composite graphite / silicon anode. When energised, these materials held 30% more capacity compared to a conventional graphite only anode material. The previously unresolved obstacles for using silicon in lithium-ion battery anodes were silicon particle swelling; prohibitive first-cycle-capacity-loss of up to 50%; and rapid battery degradation each charge and discharge cycle, were resolved during the laboratory testing of Altech's composite graphite/silicon batteries. Importantly, the Altech batteries demonstrated extremely good stability and cycling performance over extended periods.

The lithium-ion battery industry has recognised that the required step change to increase lithium-ion battery energy density and reduced costs is to introduce silicon in battery anodes, as silicon has ~ ten times the energy retention capacity compared to graphite. Silicon metal has been identified as the most promising anode material for the next generation of lithium-ion batteries. However, until now silicon was unable to be used in commercial lithium-ion batteries due to two critical drawbacks. Firstly, silicon particles expand by up to 300% in volume during battery charge, causing particle swelling, fracturing and ultimately battery failure. The second challenge is that silicon deactivates a high percentage of the lithium ions in a battery. Lithium ions are rendered inactive by the silicon, immediately reducing battery performance and life. The industry has been in the race to crack the silicon barrier.

As Tesla's Elon Musk alludes to, silicon oxide-based solutions should be the advanced anode of choice for mainstream battery producers today, and they should be expected to dominate the market over the next five to seven years.


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For personal use only

Altech's potentially game changing technology has demonstrated that silicon particles can be modified so that it resolves the capacity fading caused by both the swelling and first-cycle-loss capacity problems. Phase 2 of Altech's planned research and development program will see the Company strive to improve on the 30% energy increase achieved in the first phase. The Company has commenced a preliminary feasibility study (PFS) for the construction of a high purity alumina (HPA) coated battery materials plant in Saxony, Germany. The PFS is being undertaken by Altech's 75% owned German subsidiary, Altech Industries Germany GmbH (AIG). Work on the preliminary engineering design for the 10,000 tpa battery materials plant is in the final stages of completion. Altech has also commenced the green accreditation of the environmental credentials of the battery materials process.

In relation to the HPA Johor project, the Company continues to progress on securing the final project finance. Senior project debt financing of US$190 million has been secured from German government owned KfW IPEX- Bank. The Company is currently progressing with obtaining junior project debt financing of US$144 million, through listed green bonds. In addition, the balance in equity for the project has been mandated with various groups. Stage 1 and Stage 2 of the construction works in Malaysia were completed on budget and on schedule.

With your support, combined with funds raised from the recently announced $8.1 million share placement, your Company will be able to continue to progress with its exciting battery materials coating technology in Saxony, Germany.

I thank you for your ongoing support of the Company and invite you to participate in our Share Purchase Plan.

Yours sincerely.

Iggy Tan

Managing Director


Page 3

For personal use only

On 2 December 2021, Altech Chemicals Limited (ASX: ATC, FRA: A3Y) ACN 125 301 206 (Altech or the Company) announced that it had received firm commitments for a placement of 77,414,345 fully paid ordinary shares (Shares) at a price of 10.7 cents per Share to sophisticated and professional investors, raising approximately $8.1 million (Placement). The Shares to be issued under the Placement will be issued under the Company's placement capacity pursuant to ASX Listing Rule 7.1 [and ASX Listing Rule 7.1A.].

Altech is now pleased to provide all existing eligible Shareholders the opportunity to purchase up to $30,000 of new shares in the Company (Shares) via a Share Purchase Plan (SPP), at the same price that participants in the Placement will pay i.e. 10.7 cents per Share.

To be eligible to participate in the SPP, you were required to have been registered as a holder of Altech Shares, with a registered address in Australia and New Zealand, as at 5pm Western Standard Time (WST) on Wednesday, 1 December 2021 (Record Date). The Company intends to raise a maximum of $4.0 million via the SPP and any funds raised will be applied towards construction of a pilot plant in relation to its battery materials coating technology in Saxony, Germany, the development of PFS and DFS studies, purchase of German land, and administration costs and for general working capital purposes.

The offer of Shares under the SPP (Offer) opens on Monday 6 December 2021 (Opening Date) and closes at 5.00pm WST on Friday 17 December 2021 (Closing Date). No late applications will be accepted, however the directors of the Company (Directors) reserve the right to extend the Closing Date at their sole and absolute discretion.

The purchase price for each Share under the Offer will 10.7 cents per Share. The SPP will not be underwritten.

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)

Number of new Shares

Offer A

$30,000 (maximum)


Offer B



Offer C



Offer D



Offer E



Offer F




The number of Shares to which you are entitled will be calculated by dividing the subscription amount you have selected by the Issue Price, rounded down.

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 of the Company 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). The Company reserves the right to place any shortfall to the Offer, subject to available placement capacity under the Listing Rules.

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 Company's directors from time to time.


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For personal use only

Please carefully read the terms and conditions relating to the Offer, as you will be bound by them.

All key dates in relation to the Offer are set out below. The dates are indicative only and the Company may change any of the dates at its discretion.



Record Date for SPP

Wednesday 1 December 2021

Announce SPP and Placement and lodgement of Appendix 3B

Thursday 2 December 2021

Issue of Cleansing Notice for SPP, Dispatch SPP Offer Letter to

Monday 6 December 2021

shareholders and release Offer Letter on the ASX

Opening Date for SPP

Monday 6 December 2021

Issue of Shares under Placement, lodge Appendix 2A (Placement)

Thursday 9 December 2021

and Cleansing Notice lodged with ASIC

Closing Date for SPP

Friday 17 December 2021

Announcement of results of SPP

Monday 20 December 2021

Issue date of SPP Shares and lodgement of Appendix 2A (SPP) with

Thursday 23 December 2021


If you have any questions in respect of the SPP, the Offer, or these terms and conditions please contact:

  • your stockbroker or professional advisor;
  • Martin Stein (Chief Financial Officer) on (08) 6168 1555, or via e-mail at m.stein@altechchemicals.com, or
  • Shane Volk (Company Secretary) on (08) 6168 1555, or via e-mail at shane@altechchemicals.com

Yours sincerely.

Iggy Tan

Managing Director


Page 5

This is an excerpt of the original content. To continue reading it, access the original document here.


Altech Chemicals Limited published this content on 05 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 December 2021 22:31:00 UTC.

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Sales 2021 0,00 M 0,00 M 0,00 M
Net income 2021 2,33 M 1,68 M 1,68 M
Net cash 2021 6,64 M 4,81 M 4,81 M
P/E ratio 2021 21,5x
Yield 2021 -
Capitalization 146 M 105 M 105 M
EV / Sales 2020 37,1x
EV / Sales 2021 69 934x
Nbr of Employees 9
Free-Float 67,0%
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Ignatius Kim-Seng Tan Managing Director & Director
Martin Stein Chief Financial Officer
Luke Frederick Atkins Non-Executive Chairman
Jingyuan Liu General Manager-Operations & Marketing
Peter J. Bailey Independent Non-Executive Director
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