Altech Chemicals signs subscription agreement worth up to A$2.98 million with US institutional investor

Altech Chemicals Ltd (ASX:ATC) has executed a share purchase subscription agreement with a specialist US institutional investor which will provide up to $2.98 million.

The agreement will see Specialty Metals Investments LLC (SMI) subscribe for up to $2 million in Altech shares and also provides for an additional investment of up to $981,000, subject to shareholder approval

Funds will primarily be used for Altechs ongoing corporate activities, which are intended to position the companys high purity alumina (HPA) project for more stable financial markets and anticipated economic stimulus measures post the COVID-19 situation.

"Tremendous endorsement"[hhmc]

Managing director Iggy Tan said: “The support of SMI for the company and our HPA project during this challenging funding environment is a tremendous endorsement of our project and the potential opportunity for us post COVID-19."

A $200,000 initial payment and subscription will be made by SMI in the coming days representing a prepayment for Altech shares, which will be issued to SMI at SMIs request within 12 months of the date of the payment.

Up to eight additional payments and subscriptions of $200,000 each are then scheduled to be made by SMI on a monthly basis.

Any of these subsequent tranches may be increased to up to $300,000 (for shares with a subscription value of $327,000), but only with the consent of the company.

The aggregate amount of the initial investment will not exceed $2 million and as per the first $200,000, each subsequent payment made by SMI will represent a prepayment for Altech shares, to be issued at SMIs request within 12 months following the date of each subsequent tranche.

European strategy[hhmc]

Tan said: “Altech alternate director Uwe Ahrens and Altech Advanced Materials AG director Hanjoerg Plaggemars continue to promote Altech and our HPA project in Germany and provide us with the most up to date information about the very fluid business environment both in Germany and across Europe generally.

“Despite various COVID-19 restrictions that are in place, Uwe and Hansjoerg have been able to continue with important meRead More – Source

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