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- Altech Chemicals has updated shareholders on the progress of its German project equity strategy
- The German company in which Altech has a 29 per cent interest is looking to raise US$100 million to grab a piece of Altech’s HPA project
- Altech also released its annual report today which outlined a revenue increase of almost $2 million compared to 2018
- Altech’s share price is steady, with shares trading for 12 cents each
Altech Chemicals has updated shareholders on the progress of its German project equity strategy.
Youbisheng Green Paper AG, the Frankfurt Stock Exchange-listed company in which Altech purchased a 29 per cent interest, has now officially changed its name to Altech Advanced Materials AG (AAM).
AAM is hoping to raise approximately US$100 million which, if successful, would position it to gain up to a 49 per cent interest in Altech’s high-purity alumina (HPA) project.
This is the first step in an important long-term strategy for both AAM and Altech to provide their prospective shareholders with exposure to the HPA market and the growing European electric vehicle and lithium-ion battery market.
This comes after the longer-term vision from the German state of Saxony to consider the construction of a second HPA plant in the state.
AAM intends to secure up to US$75.7 million via a concurrent rights issue and external share placement (REIP).
It has also advised Altech that a draft REIP prospectus was lodged in September 2019, and that feedback is now being incorporated into a final version of the prospectus.
Discussions are continuing with potential German lead managers to co-ordinate the REIP, and AAM hopes to have it completed by early December.
Altech also released its 2019 annual report this morning.
It outlined the progress of construction at its Malaysian HPA plant, and the launch of the European project equity strategy.
Its cash and cash equivalents were more than $8.2 million in 2019 compared to $261,000 in 2018, and its net assets more than doubled from $31 million in 2018 to $63 million in 2019.
Revenue was also up from $4.5 million in 2018 to $6.1 million in 2019. However, net loss after tax increased from $4.5 million to $6.1 million.
Altech’s near term focus is to secure the necessary debt and equity funding to enable it to continue construction of its Malaysian HPA plant beyond stages 1 and 2.
It also hopes to construct the associated kaolin mine and loading facility at Meckering in Western Australia.
Altech’s share price is steady, with shares trading for 12 cents apiece at 12:58 pm AEDT.
