(MENAFN- ABN Newswire) Perth Mar 24 2016 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (ASX:ATC) is pleased to advise that it has raised $1.2 million via a placement of shares to a variety of professional and sophisticated investors at 8.6 cents per share (the Placement). The issue price represents a ~14% discount to volume weighted average price (VWAP) for Altech shares as traded on the Australian Securities Exchange (ASX) for the last 5 trading days to 18 March 2016 and a ~20% discount to the 10 day VWAP.
Funds raised from the Placement will be applied to finalising the detailed design of the Company's proposed high purity alumina (HPA) plant at Johor Malaysia for the completion of debt financing and for general working capital purposes.
The Placement shares will be issued to a variety of professional and sophisticated investors in accordance with Section 708 of the Corporations Act. Allotment of the Placement shares is expected to be on 1 April 2016 and the shares will rank equally with existing ordinary shares.
Share Purchase Plan
As announced on 21 March 2016 the Company is pleased to offer to existing eligible shareholders the opportunity to subscribe to a maximum of $15000 of new shares at the same price as the Placement (8.6 cents per share) via a Share Purchase Plan (SPP).
Under the SPP rules existing shareholders who are recorded on the share register at 23 March 2016 (record date) with a registered address in Australia or New Zealand will be eligible to participate and each eligible shareholder will be entitled to apply for up to $15000 of new fully paid ordinary shares of the Company at 8.6 cents per share without incurring any brokerage or other transaction costs. All new shares issued under the SPP will rank equally with existing ordinary shares of the Company.
The closing date for participation in the SPP will be Friday 8 April 2016. Full details of the SPP will be announced later today and individual letters including acceptance forms will be mailed to all eligible shareholders.
As settlement of the Placement will not occur until after the SPP record date Placement participants will not be entitled to participate in the SPP unless they were already eligible shareholder of the Company at the record date.
About Altech Chemicals Ltd
Altech Chemicals Limited (ASX:ATC) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3). HPA is a high-value product because it is the major source material for scratch-resistant artificial sapphire glass. Sapphire glass is used to produce a range of high-performance electronic applications such as LEDs semi-conductors phosphor display screens as well as new emerging products such as smartphones and tablet devices. The global HPA market is approximately 19040tpa (2014) and is expected to at least double over the coming decade.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.