Chemtrade intends to use the net proceeds from the Offering to partially finance Chemtrade's previously announced ultrapure sulphuric acid growth projects to expand capacity at its existing Ohio plant and to build a new plant in Arizona. Pending any such use, the net proceeds from the Offering will temporarily be used to reduce indebtedness under the Fund's existing credit agreement. Chemtrade believes that additional capacity for ultrapure sulphuric acid is required to support the fast-growing semiconductor industry in the United States.