Australian innovator Altech Chemicals Ltd. announced yesterday the successful placement of A$17 million in shares. The firm says that it garnered US$17.2 million in commitments for approximately 122.9 million fully-paid ordinary shares.
Altech says the share placement featured an issue price of US$0.14 per share and would be used to continue work on its flagship project, the pursuit of high-purity alumina.
German engineering company SMS group GmbH anchored the placement with a commitment of US$4.0 million (A$5.1 million), followed closely by US$3.0 million from concerns affiliated with Melewar Group, which is connected with Altech’s non-executive director Tunku Dato’ Yaacob Khyra. Both placements are subject to shareholder approval of the relevant firms’ shareholders.
The share placement price represented a 17-percent discount below the fifteen-day volume-weighted average price (VWAP) of Altech’s shares on Australia’s stock exchange, with Friday, October 20 being the last day of the period.
Altech says the proceeds will be placed toward the HPA project, including payments for land at Meckering, Western Australia and Johor, Malaysia, as well as engineering design, working capital, and other expenditures relevant to running the corporation.
Iggy Tan, Altech’s managing director, hails the successful placement as a vote of confidence in the company’s HPA project.
“The Company very much welcomes the direct investment by SMS in Altech; it strongly demonstrates their commitment and confidence as EPC contractor to the project. The ongoing support of Melewar Group is equally important; the group has supported the Company since 2015 and is a strong believer of our HPA project and the construction of the high purity alumina plant in Malaysia. The Placement leaves us well capitalised to complete the optimal funding arrangements for the HPA project in 2018.”
Altech Chemicals is based in Subiaco, Western Australia and is attempting to develop a marketable process for delivering 99.99% (4N) HPA. It plans to construct a 4,000 metric ton per annum HPA plant at Tanjung Langsat Industrial Complex, Johor, Malaysia. The firm is fast-tracking HPA production due to an agreement with Mitsubishi for 100% of its proposed HPA production for ten years. At present, Altech intends to commence project development in 2018.