Altech Batteries has unveiled an opportunity for eligible shareholders to engage in an equity raising initiative through a Share Purchase Plan (SPP), aiming to generate up to $5 million.
The initiative comes hot on the heels of the company’s Definitive Feasibility Study (DFS) for the CERENERGY project, which concluded on 20 March 2024, revealing promising figures including a Net Present Value (NPV) of €169 million and an annual free cash flow of €48 million.
Following the positive outcome of the DFS, Altech said it is progressing towards securing financing for the construction of the CERENERGY battery project, slated to be erected on the company’s property in Germany.
CEO Iggy Tan expressed his satisfaction, stating, “The results of the Definitive Feasibility Study reinforce the economic soundness and potential of our CERENERGY project. We are excited about the positive trajectory and are fully committed to advancing to the funding phase to realise this innovative venture.”
The project’s economic viability remains robust, boasting an EBITDA margin of approximately 47 per cent even at its initial production capacity.
This aligns with the forecasted growth of the grid storage market, projected at an impressive 28 per cent Compound Annual Growth Rate (CAGR).
Moreover, the project presents a competitive edge with a low lifetime levelized cost of storage at €0.06/kWh, significantly undercutting the €0.149/kWh for lithium-ion batteries.
Altech is extending the opportunity to all shareholders to participate in the capital raising via an SPP, aimed at facilitating further activities related to the CERENERGY battery project, as well as the Silumina Anodes TM battery materials project.
Notably, participation in the SPP incurs no brokerage, commission, or other transaction costs for shareholders, allowing all funds received by Alltech to be directly allocated towards commercialising its technology.
With an eye on the burgeoning grid storage market, projected to witness substantial growth amidst the global shift towards renewable energy, Altech said it is racing to bring the CERENERGY battery into production.
Shares issued under the SPP will be priced at $0.065 per share, accompanied by one free attaching option for every two shares acquired.
These options will be exercisable at $0.08 per share and will expire on 30 April 2026.
