Altech Batteries' $4M Capital Raise to Propel Innovative Battery Projects
ALTECH BATTERIES LTD (ATC) Share Update November 2024 Thursday 14th
Altech Batteries Secures $4M to Boost Battery Projects
Altech Batteries Limited (ASX: ATC) has announced a successful capital raising of $4 million to further its cutting-edge battery projects, marking a pivotal moment in the company's growth and innovation journey.
Instant Summary:
- Binding commitments secured for $4 million capital raise.
- Placement oversubscribed with shares issued at $0.06 each.
- Funds directed towards CERENERGY and Silumina Anodes projects.
- Issue price represents a 50% premium to recent entitlements.
- Free attaching options with an exercise price of $0.06.
Capital Raising Details
Altech Batteries Limited has successfully raised $4 million through the issuance of 66,666,667 fully paid ordinary shares at $0.06 per share. This placement was oversubscribed, reflecting strong investor confidence in the company's strategic direction. The issue price of $0.06 represents a 50% premium over the recent Entitlement Offer price of $0.04 per share conducted in August 2024.
Participants in the placement will receive free attaching listed options (ASX: ATCOC) on a 1:1 basis, with an exercise price of $0.06 and an expiry date of 31 December 2025. The shares and options are set to be issued on 22 November 2024, utilizing the company's available capacity under the ASX Listing Rules.
Use of Funds
The funds raised are earmarked for several strategic initiatives, including securing project finance and conducting bank due diligence for the CERENERGY project. Additionally, funds will support the completion of a second 60kWh battery prototype and the final commissioning of the Silumina Anodes pilot plant. A portion of the capital will also be allocated to a preliminary assessment for a potential 4 GWh battery factory.
Managing Director Mr. Iggy Tan expressed enthusiasm about the market's response, highlighting the premium placement as a testament to investor confidence in Altech's projects. The company does not plan another Entitlement Issue at the higher price, focusing instead on advancing its current initiatives.
This capital raise positions Altech Batteries to accelerate its CERENERGY and Silumina Anodes projects, potentially enhancing its market competitiveness. The 50% premium on the share price indicates strong investor confidence, which could positively influence the company's stock performance. The strategic use of funds to secure project finance and further technological development could enhance Altech's long-term growth prospects.
Investor Reaction:
Analysts are likely to view the oversubscription of the placement positively, as it underscores strong market interest in Altech's innovative battery technologies. The premium pricing suggests that investors are optimistic about the company's future growth and project success.
Conclusion:
Altech Batteries' successful capital raise marks a significant step in advancing its battery projects, offering promising prospects for future growth. Investors should monitor the progress of the CERENERGY and Silumina Anodes projects, as these developments could significantly impact the company's market position.