Altech – Entitlement Offer & Share Placement to Advance Battery Projects

Altech Batteries Limited (Altech/Company) (ASX: ATC) (FRA: A3Y) announces a total capital raising of up to approximately $8.9 million, comprising the issue of up to 223,946,491 fully paid ordinary shares in the capital of the Company (Shares) at an issue price of $0.04 per Share (“Capital Raising”). Participants in the placement and Entitlement Offer will also receive free attaching options on the basis of one (1) option for every two (2) shares held, with each option having an exercise price of $0.06 and expiry date of 31 December 2025.

Highlights

• Launch of $8.5 million pro-rata Entitlement Offer to existing eligible shareholders
• Entitlement Offer partially underwritten for $5 million by existing shareholder MAA Group Berhad, an entity related to Altech director Tunku Yaacob Khyra
• Altech additionally raises $405,000 through a placement to sophisticated and professional investors
• Participants in placement and Entitlement Offer to receive free attaching options on the basis of 1 option for every 2 shares held with exercise price of $0.06 and expiry 31 December 2025
• Application will be made to ASX for listing of shares and options
• Funds will be used to further progress the CERENERGY® and Silumina Anodes^TM Projects

Capital Raising

The Capital Raising comprises:

• a single tranche placement of 10,125,000 Shares to sophisticated and professional investors at an issue price of $0.04 per Share to raise $405,000 (“Placement”). Participants in the Placement will also receive free attaching options on the basis of one (1) option for every two (2) shares held, with each option having an exercise price of $0.06 and expiry date of 31 December 2025; and
• a proposed partially underwritten non-renounceable Entitlement Offer of 1 Share for every 8 Shares held by Eligible Shareholders (defined below) at the same issue price as the Placement of $0.04, to raise up to approximately $8.5 million (“Entitlement Offer”). Participants in the entitlement offer will also receive free attaching options on the basis of one (1) option for every two (2) shares held, with each option having an exercise price of $0.06 and expiry date of 31 December 2025.

It is proposed that the Shares under the Placement will be issued on 14 August 2024 and will be issued out of the Company’s available capacity under Listing Rules 7.1. The Options under the Placement will need to be applied for pursuant to the Entitlement Offer Prospectus.

Full details of the Entitlement Offer (including the record date and eligibility requirements) will be set out in the Prospectus expected to be lodged with ASIC in accordance with the timetable set out below.

Underwriting

Altech Director Tunku Yaacob Khyra’s related entity, MAA Group Berhad, has agreed to partially underwrite the Entitlement Offer for $5,000,000 (125,000,000 Shares which includes MAA Group Berhad taking up its entitlement under the Entitlement Offer), being a total of 58% of the maximum amount to be raised under the Entitlement Offer.

Under the terms of the underwriting agreement with MAA Group Berhad, the Company will pay MAA Group Berhad a fee of 6% of the amount underwritten.

Eligible Shareholders and Applying for Shares under the Entitlement Offer

The Entitlement Offer is open to all eligible shareholders who have a registered address within Australia, New Zealand, Germany, Malaysia, Switzerland and Singapore and who hold shares on Tuesday, 13 August 2024 (Eligible Shareholders), and will close on Tuesday, 27 August 2024 (unless otherwise extended by the Board).

All Shares issued will rank equally with existing Shares on issue and the Company will apply for quotation of the new Shares and Options issued pursuant to the Entitlement Offer. A personalised Entitlement and Acceptance Form will be sent to eligible shareholders shortly after the record date of Tuesday, 13 August 2024.

Shortfall

The Entitlement Offer includes a shortfall facility under which Eligible Shareholders that have taken up their full entitlement under the Entitlement Offer can apply to take up additional Shares (“Shortfall Shares”) in excess of their pro rata entitlement (“Shortfall Entitlement Offer”). The Shortfall Entitlement Offer may also be offered to third parties introduced by the Company. The Shortfall Entitlement Offer is a separate offer made pursuant to the Prospectus and will remain open for up to three (3) months following the Closing Date (as outlined below). The securities issued under the Shortfall Entitlement Offer will have the same terms as those issued under the Entitlement Offer.

All decisions regarding the allocation of Shortfall Shares will be at the sole-discretion of the directors in and will be final and binding on all applications under the Shortfall Entitlement Offer. As such, there is no guarantee that any Shortfall Shares will be issued to applicants.

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