Insights

Here’s why the Altech Chemicals (ASX:ATC) share price is plunging 14% today

The company’s shares have come out of a trading halt to plummet on Thursday.
The post Here’s why the Altech Chemicals (ASX:ATC) share price is plunging 14% today appeared first on The Motley Fool Australia. –

The Altech Chemicals Ltd (ASX: ATC) share price is having a day to forget today. This comes after the alumina producer announced an update on its recent share placement.

During mid-afternoon trade, Altech Chemicals shares are down 14.29% to 12 cents apiece. In comparison, the All Ordinaries (ASX: XAO) is 0.78% lower to 7,498.9 points.

What’s dragging Altech Chemicals shares lower?

Investors are scrambling to sell the Altech Chemicals share price as the company prepares to dilute existing shareholder value.

According to its release, Altech Chemicals advised it has successfully completed an $8.1 million share placement.

The offer received strong support from an array of investors, picking up Altech Chemicals shares at 10.7 cents each. This represented a 24% discount to the last closing price of 14 cents apiece on 29 November.

In addition, the company will undertake a share purchase plan (SPP) whereby existing shareholders can apply. The terms and conditions of the offer are the same as the placement.

The shares will be issued in a single tranche under the company’s listing rule 7.1. In total, 76 million shares will be created and allotted to investor accounts on 23 December.

Proceeds of the placement will be used to accelerate the construction of a battery materials coating pilot plant in Germany. Altech Chemicals is funding 75% of the costs to build the facility.

Furthermore, the remaining monies will be allocated towards a number of smaller initiatives. This includes purchasing land at the Schwarze Pumpe Industrial Park, completing the preliminary feasibility study, and commencing a definitive feasibility study.

About the Altech Chemicals share price

Since this time last year, Altech Chemicals shares have posted a gain of 200%, reflecting positive investor sentiment. The company’s share price reached a multi-year high of 15 cents late last month.

On valuation grounds, Altech Chemicals commands a market capitalisation of around $154.70 million, with 1.29 billion shares on issue.

The post Here’s why the Altech Chemicals (ASX:ATC) share price is plunging 14% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Altech Chemicals right now?

Before you consider Altech Chemicals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Altech Chemicals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Dubber (ASX:DUB) share price plunges 6% despite BT deal

Could South32 (ASX:S32) shares be poised to deliver monster dividends?

Coles (ASX:COL) hauled to court over $115 million in underpayments

Here’s what happened with Ethereum’s (CRYPTO:ETH) record breaking November

Why is the Vanguard Australian Shares Index ETF (ASX:VAS) the most successful Aussie ETF?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!