Altech Batteries (ASX: ATC) Secures EUR 2.5M Funding Agreement with Deutsche Balaton

March 25, 2025 03:34 PM AEDT | By Aditi Sarkar

Altech Batteries (ASX: ATC) Secures EUR 2.5M Funding Agreement with Deutsche Balaton

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Highlights

Altech has reached an agreement with major shareholder Deutsche Balaton AG to access up to EUR 2.5mn in cash funding.

The funding will be provided through Bearer Bonds, with an interest rate of 7.0% per annum.

The funds would support the ongoing development of Altech's CERENERGY® and Silumina Anodes™ battery materials project, as well as working capital requirements.

Repayment of the Bearer Bonds is expected to be funded by the sale of Altech’s Malaysian land in Johor.

Specialty battery technology company Altech Batteries Limited (ASX:ATC, FRA: A3Y) has announced executing a binding Bond Note Subscription Deed with its major shareholder, Deutsche Balaton AG. The agreement allows Altech to access up to EUR 2.5 million in cash through interest-bearing bearer bonds. In addition, the company is selling its land in Johor, Malaysia.

The funds would support the ongoing development of its CERENERGY® battery project and Silumina Anodes™ battery materials project, as well as provide additional working capital.

The funding will allow Altech to advance its key projects without diluting shareholder value through a share issuance. The total bearer bond facility of up to EUR 2.5 million would be drawn down in increments of EUR 500,000, with an annual interest rate of 7.0%. The bonds are set to be repaid by their maturity date of 31 October 2026.

Repayment of the bonds is secured by Altech’s Malaysian land in Johor, and shareholder approval will be required for the arrangement, with a general meeting planned for late April 2025. Altech has placed the land on the market for sale, and proceeds from the sale are expected to fully cover the repayment of the bearer bonds.

Additionally, a Security and Security Trust Agreement has been established, under which Altech’s wholly owned subsidiary, Altech Chemicals Sdn Bhd, has pledged security over its Malaysian land and provided a guarantee for the repayment of the Bearer Bonds.

The share price of ATC was AUD 0.040 at the time of writing on 25 March 2025.

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