Altech Batteries Limited (Altech/Company) (ASX: ATC) (FRA: A3Y) announces a capital raising of $4 million, comprising the issue of 66,666,667 fully paid ordinary shares in the capital of the Company at an issue price of $0.06 per Share. This price is a premium of 50% of the issue price to the Company’s shareholders in the recent Entitlement Offer conducted on 7 August 24. Participants in the placement will also receive free attaching listed options (ASX: ATCOC) of 1 option for every 1 share issued with an exercise price of $0.06 and expiry date of 31 December 2025.

Highlights

• Binding Commitments to raise $4 million
• Placement oversubscribed
• Issue price of $0.06 per share, a 50% premium to recent Entitlements Issue on 7 August 2024
• Funds will be used to further progress the CERENERGY® and Silumina Anodes^TM Projects

It is proposed that the Shares and Options under the Placement will be issued on 22 November 2024 and will be issued out of the Company’s available capacity under Listing Rules 7.1.

The Placement was managed by Evolution Capital. The costs associated with the Placement was a 6% fee on all funds raised. Evolution Capital will also receive 8,000,000 ATCOC options for managing the Placement.

The funds raised under the Placement will be used for:

• Securing project finance and bank due diligence process
• Securing offtake for CERENERGY® project
• CERENERGY® environmental and project permitting
• Completion of fabrication of second 60kWh battery prototype for CERENERGY® project
• Finalise commissioning of the Silumina Anodes^TM pilot plant
• Preliminary assessment into a 4 GWh factory (Giga factory)
• Corporate costs and working capital.

Managing Director Mr Iggy Tan stated“We are encouraged by the strong market interest in our current initiatives. In August 2024, we conducted an Entitlements Issue at $0.04 per share that provided our existing shareholders with a fair opportunity to participate previously. The current placement at $0.06 per share represents a 50% premium over the recent Entitlements Issue price and Altech does not intend to conduct another Entitlement Issue at the higher price.

This capital raise comes at an exciting juncture for Altech as it advances the commercialisation of its 120MWh CERENERGY® battery project and nears commissioning of the Silumina Anodes pilot plant. A portion of the funds will also be allocated to a preliminary study for a larger 4 GWh battery facility, marking the next significant step towards commercialisation”.

The table below outlines the intended use of funds for the $4M raised via this placement.

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