Thurso-based AMTE Power, the developer of next generation battery cells, said on Thursday its financial situation “is becoming ever more critical.”

The firm said if it is put into administration, trading of its shares on AIM would be suspended with immediate effect.

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 about 98% to around 4.5p, reducing the stock market value of the firm to around £1.6 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 have been capable of producing over eight million battery cells per annum.

In a stock exchange statement, AMTE Power said: “Further to its earlier announcements, AMTE Power Plc, a leading developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, today announces a further update to its financing position.

“The company continues to be in discussions with existing and potential investors concerning raising further finance.

“However, given the further passage of time since the most recent announcement on 29 June 2023, the company’s financial situation is becoming ever more critical. Having managed its resources, the company now needs to implement a solution within the next few business days.

“Whilst active discussions continue with existing and potential investors, there can be no certainty of the outcome of these discussions, in which case putting the company into administration is ever more likely. In the event that the company is put into administration, trading of its shares on AIM would be suspended with immediate effect.

“Accordingly, should the company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be remote. Further announcements will be made as and when appropriate.”