Troubled Scottish battery maker Amte Power announced it had issued new ordinary shares, which will raise £2.1 million ($2.6 million) before expenses. It plans to issue a further £250,000 by making a separate retail offer.
The net proceeds of the issue will be used to provide further time and working capital – until early November – for the company and its potential new equity investor to complete the proposed initial equity investment of £2.5 million, which was announced in July.
The unnamed potential investor has advised Amte that it can introduce companies in which it has an equity interest to generate offtake agreements for its sodium-ion battery cells. Amte also makes lithium-ion cells.
It would also provide similar introductions to other companies with which it has strategic relationships, it said. These companies have battery technology deployed at large scale in various industries. They include renewable energy.
Amte will issue its potential investor with compensatory warrants in recognition of the value of offtake agreements, which may require shareholder approval.
Due diligence is progressing, and confirmatory and technical due diligence is the investor’s current focus. Amte said it expects this to be complete by the end of October 2023.
Amte said it has drawn half of the £1 million ($1.25 million) under the loan facility provided by Arena Investors LP previously announced.
If shareholders do not approve of the two share issues at the company’s general meeting, they will not proceed as planned. “Accordingly, in light of the Group’s reducing cash position, it would be likely that Amte Power would not be able to meet its financial obligations as they fall due and there would be no alterative other than for the Group to enter into administration or some other form of insolvency procedure,” it said.