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- Altech Chemicals (ATC) ended the first week of November in a trading halt as it prepares for an equity raise
- So far, just how much the materials stock intends to raise — or even what it’ll use the funding for — remains unclear
- However, shareholders should find out more by next Tuesday, November 10
- In its latest financial report, Altech revealed it went cashflow-negative by $642,000 in FY21’s opening quarter
- While the September quarter’s cash burn was lower than the June quarter, Altech is yet to post customer receipts, meaning its cash outflows are primarily covered by its cash reserves
- As a result, ATC has less than one quarter of funding available to support its operations, which could explain the latest capital raise
- Before it entered the trading halt, ATC shares were trading just shy of the 5-cent mark on Thursday, November 5
Altech Chemicals (ATC) ended the first week of November in a trading halt as it prepares for an equity raise.
So far, just how much the materials stock intends to raise — or even what it’ll use the funding for — remains unclear.
However, shareholders should find out more on or by next Tuesday, November 10.
Today’s trading halt announcement follows a busy month at Altech. Over October, the company announced it would kickstart a green bond offering process, delivered its quarterly report, sold off a quarter of its subsidiary and was offered a €7.38 million (roughly A$12.1 million) German Government grant.
In its latest financial report, Altech revealed it went cashflow-negative by $642,000 in FY21’s opening quarter.
Staff costs comprised ATC’s largest operation expense, coming in at $315,000, while the materials stock spent $51,000 on development costs.
While the September quarter’s cash burn was lower than the June quarter, Altech is yet to post customer receipts, meaning its cash outflows are primarily covered by its cash reserves.
That meant the dual-listed company, which is aiming to become a world-leading high purity alumina (HPA) supplier, went from an $833,000 cash balance to $581,000 in reserves.
As a result, ATC has less than one quarter of funding available to support its operations — that is, as long as spending levels remain the same.
It could explain why the company is seeking fresh capital, although investors should know for sure by early next week.
Before it entered the trading halt, ATC shares were trading just shy of the 5-cent mark on Thursday, November 5.
