Funding Agreement with Deutsche Balaton AG

Altech Batteries (ASX:ATC) has entered into a bearer bond agreement with major shareholder Deutsche Balaton AG, allowing the company to access up to €2.5 million in funding. The agreement, which requires shareholder approval, will provide cash in increments of €500,000. The interest payable on the bearer bonds will be 7 per cent per annum.

The bonds will be secured against Altech’s Malaysian land, which is currently on the market for sale. The proceeds from the land sale are expected to be used for repayment of the bonds. The maturity date for repayment is October 31, 2026.

A shareholder meeting to approve the security arrangement is scheduled for late April 2025.

Details of the Funding Structure

The agreement outlines that:

• The total bearer bond facility amounts to €2.5 million.
• Funds can be drawn in increments of €500,000.
• Interest is set at 7.0 per cent per annum.
• The bonds are secured by Altech’s Malaysian land.
• Repayment is expected to come from the sale of the Malaysian land.
• The agreement requires shareholder approval or an ASX waiver.

A Security and Security Trust Agreement has been signed, under which Altech’s wholly owned subsidiary, Altech Chemicals Sdn Bhd, has pledged security over the land and provided a repayment guarantee.

Use of Funds for Battery Projects

Altech intends to use the funds for its CERENERGY® and Silumina Anodes™ projects, as well as general working capital. The latter two projects include:

• CERENERGY® Sodium Chloride Solid State Batteries: A joint venture with Fraunhofer IKTS to commercialise lithium-free, fireproof battery technology. Plans include a 120 MWh production facility in Saxony, Germany.
• Silumina Anodes™ Battery Materials: A project to commercialise silicon-enhanced lithium-ion battery materials, with a planned 8,000tpa silicon-alumina coating plant in Saxony.

Next Steps and Shareholder Approval

Altech will proceed with the required shareholder meeting in late April 2025 to approve the security arrangement. Updates on the land sale and funding drawdowns will be provided as they develop.