Altech (ASX: ATC, FRA: A3Y) to raise AU$15.8M to fuel battery tech projects

Highlights

• Altech Batteries is eyeing to raise AU$3 million via a placement and AU$12.8 million through an entitlement offer.
• The company’s major shareholders have agreed to partially underwrite AU$6.7 million under the entitlement offer.
• The funds would be directed towards advancing the CERENERGY® and Silumina Anodes^TM

Australian company Altech Batteries Ltd (ASX: ATC) has announced a capital raise of up to AU$15.8 million. The program comprises the issue of up to 226.56 million shares at an issue price of AU$0.07 apiece. 

The company intends to raise AU$12.8 million via an entitlement offer and AU$3 million through a placement to professional and sophisticated investors.

Image source: company update  

Deutsche Balaton Aktiengesellschaft and Delphi Unternehmensberatung Aktiengesellschaft (DB), substantial shareholders of Altech, have agreed to partially underwrite the entitlement offer for AU$6,700,000, representing 52% of the amount to be raised through the entitlement offer.

Proceeds from the raise will be employed in progressing the CERENERGY®, Silumina Anodes^TM project as well as meeting corporate costs and working capital requirements.

Details of the capital raise

The capital raise comprises a single-tranche placement of over 42.8 million shares at an issue price of AU$0.07 apiece to raise AU$3 million.

The entitlement offer is a partially underwritten, non-renounceable offer of one share for every eight shares held by shareholders at an issue price of AU$0.07 apiece, to raise up to AU$12.8 million.

The entitlement offer is open to eligible shareholders with a registered address in New Zealand, Australia, Malaysia, Germany, Singapore, and Switzerland and who held shares on 21 July 2023. The closing date of the entitlement offer is 4 August 2023.

Use of proceeds

The funds raised are intended for a definitive feasibility study of the CERENERGY® project, Fraunhofer joint venture payments and fabrication of two 60kWh battery prototypes.

Also, the funds will be used for the Silumina Anodes^TM project for finalising the plant's construction and commissioning and definitive feasibility study.  

ATC shares were trading at AU$0.077 midday on 18 July 2023.