AMTE Power has successfully raised £2.1 million ($2.6 million) through a heavily discounted share placing, as part of its plan to avoid insolvency and secure time for its initial recapitalization. In addition, the company plans to raise up to £250,000 through a retail offer.
Share Placing Details
AMTE Power, a manufacturer of lithium-ion and sodium-ion battery cells, announced on Friday that it has conditionally placed 124.5 million new ordinary shares at a price of 1.7 pence per share. This represents an 82% discount compared to the closing share price on Thursday.
Share Capital and Proceeds
Upon admission of the firm shares, AMTE Power’s share capital will comprise 48.3 million shares. Following the conditional share admission, this will increase to 160.9 million shares, with the placing shares representing approximately 77.4% of the enlarged company’s share capital.
Assuming the conditional admission is approved, the proceeds from the share placing will provide the company with working capital until early November. If shareholders do not approve, AMTE Power states that it may have no choice but to enter administration or another insolvency procedure.
The net proceeds will be utilized to give the company and a potential new equity investor more time to complete their proposed initial equity investment of £2.5 million.
