Altech Chemicals Limited (Altech/the Company) (ASX:ATC) has welcomed a number of institutional investors onto its share register as a result of a AU$10 million oversubscribed share placement (the Placement). Placement shares will be issued at 14 cents per share, which represents a 14% discount to the price of the Company's shares at the close of trade on the Australian Securities Exchange (ASX) on 21 July 2016. Highlights:
- $10 million raised via share placement to institutions, professional and sophisticated investors
- Placement was heavily oversubscribed
- A range of quality institutional investors join Altech's share register
Funds raised from the Placement will be applied to finalising the detailed design of the Company's proposed Malaysian high purity alumina (HPA) plant, completion of independent due diligence associated with finalising debt financing, closure of debt financing and for general working capital purposes.
Approximately 71.4 million new shares will be issued under the Placement in two tranches. An initial tranche of approximately 39.2 million shares, in accordance with the Company's residual placement capacity under ASX Listing Rules 7.1 and 7.1A, will be settled on 3 August 2016. A second tranche for the balance of the shares will be subject to shareholder approval at a general meeting of the Company to be convened in mid-September 2016.
The Company is delighted that high-quality investment institutions predominantly from Australia, New Zealand, Hong Kong and Asia have participated in the Placement and now join the Company's share register. The Company will continue to focus on building institutional support for its HPA project in preparation for a project finance equity raising that will be required once debt funding arrangements have been finalised.
Altech managing director, Mr Iggy Tan said, "The Company is extremely pleased with the quality and calibre of institutions that have joined our share register as part of the Placement. Most of the participants were surprised as to how advanced the Company is with its HPA project, with the bankable feasibility study completed, off-take in place and the advanced nature of debt funding, all of which has transferred directly into demand for the Placement, which was subsequently heavily oversubscribed.
"Institutional investor representation on the Company's share register has increased from around 9% to closer to 23% following the Placement, with plans to grow it over time", Mr Tan concluded.
Perth stockbroking firm DJ Carmichael Pty Ltd and Empire Capital Partners with offices in Hong Kong and Perth were the respective lead and co-manager of the Placement.
As the Company has already conducted a share purchase plan (SPP) during the proceeding 12-months (March 2016), the Company is unable to offer an SPP to existing shareholders as part of this capital raising (ASIC regulation of not more than $15,000 per shareholder via an SPP each 12 month period).
Iggy Tan Managing Director Altech Chemicals Limited Tel: +61-8-6168-1555 Email: info@altechchemicals.com Shane Volk Company Secretary Altech Chemicals Limited Tel: +61-8-6168-1555 Email: shane@altechchemicals.com
