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Highlight
- Altech Batteries secures $4.28 million funding from Deutsche Balaton AG.
- Company advances on two major battery technology projects.
- Moves towards full ownership of Silumina Anodes to boost operational flexibility.
Altech Batteries (ASX:ATC) has recently fortified its financial and operational strategy through a significant funding agreement and strategic project developments. Deutsche Balaton AG, a principal shareholder, has provided a substantial financial injection via a loan facility totaling $4.28 million. This funding is earmarked for the advancement of Altech's CERENERGY and Silumina Anodes battery technology projects.
The loan, structured through a binding bond note subscription deed, allows Altech to access the funds via bearer bonds, accruing interest at an annual rate of 7%. This strategic financing approach is designed to propel project development without diluting shareholder value through a public share offering.
Focusing on its expansion plans, Altech has made considerable progress with its CERENERGY project, particularly in establishing a solid foundation for its future sodium-chloride solid-state battery manufacturing plant in Germany. The company has collaborated with its financial adviser since January to identify and shortlist potential lenders. To date, interest from ten commercial banks and two venture debt funds has been promising.
In addition to securing funds, Altech anticipates repaying the bonds by selling its land in Johor, Malaysia. This plan is contingent upon shareholder approval in the upcoming month. Security for the bond repayment is ensured through a trust agreement with Altech Chemicals, a subsidiary, which holds the Malaysian property.
Recently, Altech achieved another milestone by obtaining the final necessary permits for constructing the CERENERGY GridPack production facility. This plant, which will produce batteries from table salt, is expected to offer a sustainable alternative to traditional lithium-ion batteries. A feasibility study revealed the plant's potential for a pre-tax net present value of around $291 million, with an estimated annual revenue of $182 million and EBITDA of $88 million.
On another front, Altech is enhancing its stake in the burgeoning electric vehicle market through its Silumina Anodes project. The company recently acquired full ownership interests in Altech Energy Holdings and Altech Industries Germany, marking a strategic move to streamline decision-making processes and bolster project execution without external interferences.
These steps underscore Altech's commitment to innovation in battery technology and strategic financial management, setting the stage for substantial growth in the renewable energy sector.
