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Highlights
- Through the SPP, Altech aims to raise AU$5 million at an issue price of AU$0.065 apiece.
- The proceeds will support its CERENERGY® battery project and the Silumina AnodesTM battery materials project.
- The SPP follows positive outcomes from the definitive feasibility study (DFS) for the CERENERGY® project.
- Altech is making progress in securing financing and offtake agreements for the CERENERGY® project
Altech Batteries Limited (ASX: ATC) has launched a share purchase plan (SPP) aiming to raise up to AU$5 million. The SPP follows the successful conclusion of the DFS for the CERENERGY® project in March 2024.
The study revealed that an estimated investment of €156 million would result in a net present value of €169 million and an annual free cash flow of €48 million. Additionally, the project’s estimated internal rate of return (IRR) is 19%, with a payback period of 3.7 years. Details here.
Building on the DFS findings, Altech is progressing with efforts to secure financing for the construction of the plant for the CERENERGY® battery project that is planned to be developed on Altech's property in Germany.
Details of the SPP
Under the SPP, each eligible shareholder can subscribe for up to AU$30,000 worth of shares, at an issue price of AU$0.065 per share. Additionally, participants will receive one free-attaching option for every two shares subscribed, with each option having an exercise price of AU$0.08 and expiring on 30 April 2026.
The record date of the offer is 16 April 2024, and it will close on 8 May 2024.
Funds to advance battery projects
The funds raised through the SPP will be used to support ongoing initiatives related to the CERENERGY® battery project and the Silumina AnodesTM battery materials project.
Altech plans to utilise the funding to complete the fabrication of two ABS60 60KWh prototypes of CERENERGY battery packs, which will undergo customer testing to secure offtake agreements.
Additionally, Altech intends to allocate funds towards advancing its Silumina Anodes downstream alumina coated battery materials business, which has the potential to significantly impact the electric vehicle battery market. Specifically, the proceeds will go towards finalising the construction of the pilot plant for the 8,000tpa Silumina Anodes project, enabling the production of commercial samples for select potential customers.
Participating in an SPP does not involve any brokerage, commission, or additional transaction expenses for the participant. Therefore, all funds received by Altech can be utilised directly by the company to advance its technology commercialisation efforts.
Image source: Company update
ATC shares traded at AU$0.067 apiece at the time of writing on 17 April 2024.
