Shares of Thurso-based AMTE Power, a developer of next generation battery cells, fell about 70% on Thursday after it published a stock exchange statement saying its needs to conclude some form of fundraising “within no less than the next four weeks.”
AMTE said: “Accordingly, in light of the company’s reducing cash position, should the company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be uncertain.”
AMTE went public at £1.75 per share in March 2021 and quickly rose as high as £3.14 — but its shares have since fallen more than 90% to around 14p, reducing the stock market value of the firm to around £5.3 million.
The firm was founded in 2013 and is a developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets.
AMTE Power’s purpose-built cell manufacturing facility in Thurso has the second largest cell manufacturing capacity in the UK and the company also has a product development team based in Oxford.
The company’s proposed gigafactory in Dundee would be capable of producing over eight million battery cells per annum.
AMTE said in a stock exchange update to its financing position: “The company stated on 1 December 2022 that it would need to raise additional capital by April 2023 in order to meet its then current operating costs.
“On 31 March 2023 and 25 April 2023 it announced drawing down (i) a new £580,000 loan facility and (ii) £1.0 million under its convertible loan facility, respectively.
“The company has subsequently been in, and continues to be in, discussions with potential investors concerning raising further finance.
“The company needs to conclude some form of fundraising within no less than the next four weeks. Whilst active discussions are ongoing, there can be no certainty of the outcome of these discussions.
“Accordingly, in light of the company’s reducing cash position, should the company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be uncertain.”