Altech Chemicals Ltd (ASX: ATC) announces SPP, seeks to raise up to AU$4 million


  • On 25 November 2021, ATC announced a successful breakthrough, achieving a 30% enhancement in the energy retention capacity of lithium-ion batteries using its proprietary coating technology.
  • Last week, the Company concluded an equity placement raising $8.1 million.
  • Under the SPP, Altech seeks to raise up to AU$4 million and invites all existing eligible shareholders to participate in the Share Purchase Plan.

Altech Chemicals Ltd (ASX:ATC) today announced that it is undertaking a  Share Purchase Plan (SPP), inviting all existing eligible shareholders to participate at an issue price of 10.7 cents per share, being the same issue price as the recent placement.

SPP: Fueling the next leap

Altech, the aspiring battery materials coating and HPA producer, had announced the successful breakthrough of achieving a 30% enhancement in the energy retention capacity of lithium-ion batteries using its proprietary coating technology.

Following the upbeat progress by Altech’s R&D team, the Company concluded an equity placement, raising $8.1 million via the issue of approximately 76 million fully paid shares at 10.7 cents per share. The capital raised from the equity placement as well as the SPP will be used for the purchase of land in Germany and the construction of a battery materials coating pilot plant, completion of a preliminary feasibility study in relation to the construction of a larger 10,000 tpa battery materials plant, a definitive feasibility study for construction of the 10,000 tpa plant, and for working capital purposes. The plant will be utilised to continue the development of Altech’s downstream alumina-coated battery materials business in line to serve the burgeoning European electric vehicle (EV) battery market.

Source: Altech Chemicals 6 December 2021

Under the SPP, Altech invites all existing eligible shareholders to subscribe to new shares worth up to AU$30,000) via the SPP at an issue price of AU$0.107 a share, the same issue price as the placement. The SPP seeks to raise up to an additional AU$4 million.

All existing shareholders with registered addresses in Australia and New Zealand as on 5PM WST on 1 December 2021 (Record Date) can participate in the SPP. The SPP opens on 6 December 2021 and will close at 5.00pm WST on 17 December 2021.

Cracking the Silicon Code, Revolutionising the EV Industry

Following over 12 months of research and development work, Altech announced that it had successfully cracked the silicon code. Altech has successfully combined silicon parties treated by its own coatings technology with regular battery-grade graphite particles, resulting in an enhanced lithium-ion battery electrode with a composite graphite/silicon anode.

Impact of adding silicon in lithium battery

Furthermore, the Altech batteries displayed good stability and cyclical performances over extended periods.

Read more about the disruptive technology: 'Silicon Code' decoded: Altech Chemicals' breakthrough to improve battery performance by 30%

Silicon has been widely recognised by the battery industry as the element that can be used to improve the energy retention capacity of conventional graphite anodes by up to 10 times, while also reducing overall costs.

The genius of our century and a global EV disruptor, Elon Musk, has expressed that silicon oxide-based solutions should be the choice of advanced anode for the battery industry and would dominate the EV battery industry in the upcoming five to seven years.

Phase 2 of the research and development program by Altech will look to extend the performance enhancement beyond 30% achieved during the first phase. Altech's 75%-owned subsidiary, Altech Industries Germany GmbH (AIG), is currently undertaking a preliminary feasibility study (PFS) for high purity alumina- (HPA) coated battery materials plant construction in Saxony, Germany. The preliminary engineering design for the coatings plant is in its final stages.

In relation to the HPA Malaysian project, the Company has advanced to secure finance for the final project. A US$190-million senior project debt financing facility is already in place with German government-owned KfW IPEX-Bank. As for now, the Company is progressing on securing a US$144-million junior project debt financing via listed green bonds. Stage 1 and Stage 2 of the construction works in Malaysia were completed on budget and on schedule.

Altech traded at AU$0.11 a share on 6 December 2021 with a market capitalisation of AU$161.15 million.





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