28th Jun 2023 11:51
(Alliance News) - Amte Power PLC on Wednesday said it is in discussions with investors over further financing, but said it is not currently pursuing a sale of the company itself.
Shares in the London-based lithium-ion and sodium-ion battery cells developer and manufacturer were down 20% to 4.50 pence each in London on Wednesday, late morning.
Amte's update on Wednesday followed its announcement earlier in the month, when it noted discussions to raise further finance with investors and said that it must complete "some form" of fundraise in the next four weeks.
"However, given the passage of time since the announcement, it is now considering all credible options, including a sale of the company's business, in relation to which FRP Corporate Finance is advising, in order to act in the best interest of all stakeholders in the company," the company said.
It also said, at this stage, it is not actively pursuing a sale of the company itself.
Amte also reiterated that there is no certainty of the outcome of its discussions with investors.
The company added: "In light of Amte Power's reducing cash position, should the company be unable to secure additional funding within no less than the next three weeks, the prospects for recovery of value, if any, by shareholders would be uncertain."
It said further announcements will be made "as and when appropriate".
Back in December, the firm said it would need to raise additional capital by April to meet its then current operating costs.
In March, Amte drew down a GBP580,000 loan facility from Highlands and Enterprise, which is repayable after three years and incurs interest, after an initial 12-month interest free period, at 6.5% per annum.
In April, the company issued a second tranche for the drawdown of GBP1.0 million of a convertible loan facility signed with Arena Investors LP of around GBP3.9 million back in November.
By Greg Rosenvinge, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
AMTE.L