Altech Batteries (ASX:ATC) has reached a funding agreement with its largest shareholder, Deutsche Balaton AG, allowing it to draw down up to €2.5m to support ongoing project development and working capital.
Under the terms of the deal, Altech will issue Bearer Bonds carrying 7% annual interest, secured against its Malaysian land, which is currently on the market. Proceeds from the land sale are expected to repay the bonds in full.
The company said it entered into the bond subscription deed to avoid diluting existing shareholders through a capital raise. A shareholder meeting to approve the facility is expected in late April 2025.
The bond facility will be available in €500,000 tranches, with final repayment due by 31 October 2026. A security agreement has been signed through Altech’s 100%-owned Malaysian subsidiary, which includes a guarantee of repayment.
Altech is currently developing two battery technology initiatives. Its CERENERGY® project, in partnership with Germany’s Fraunhofer Institute, is focused on sodium chloride solid-state batteries intended for grid storage. Separately, its Silumina Anodes™ project is targeting high-capacity silicon anode materials for lithium-ion batteries, with a proposed 8,000 tonnes per annum production facility in Saxony, Germany.
Further details on the land sale and shareholder approval process are expected in the coming weeks.
