Altech Chemicals announces Share Purchase Plan and placement; raises US$1.39 million

Australia's Altech Chemicals Limited, engaged in the development of high purity alumina (HPA), announced Monday, June 12, that it has been able to raise A$1.85 million (US$1.39 million) through its recent Share Purchase Plan (SPP) and placement. The decision has landed the company's shares in the hands of outside investors and new professionals.

Altech issued its shares at a price of A$0.11 (US$0.08) per share with a five-percent discount below the volume-weighted average price of its shares on Australian stock exchange over the five days up to last Wednesday, June 7, the company said in an official statement.

Altech Chemicals Managing Director Iggy Tan

Commenting on the SPP and concurrent placement, Altech’s managing director Iggy Tan said, “The Company is extremely pleased with the support shown from its existing shareholder base via participation in the SPP.”

“In excess of 250 shareholders participated in the SPP, with a large number electing to apply for the maximum application amount of $15,000. Concurrent with the SPP, the Company is delighted to welcome a small number of new European based shareholders that have been recently introduced to the Company and were placed shares at the SPP price,” he said.

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Altech Chemicals is attempting to develop a marketable process for delivering 99.99% (4N) HPA, and has plans to construct a 4,000 metric tonne per annum high purity alumina plant at Tanjung Langsat Industrial Complex, Johor, Malaysia. The company entered into an agreement with Mitsubishi for 100 per cent of its proposed HPA production for ten years. Presently, Altech intends to commence construction at the site in the third quarter of the current financial year.