AMTE shares fall 78% amid discounted fundraising

Shares of Thurso-based battery cell developer AMTE Power fell about 78% to around 2.07p on Friday after it announced details of a heavily discounted fundraising.

AMTE said it has conditionally placed 124,476,380 new ordinary shares at 1.7p per share to raise £2.1 million.

In a stock exchange statement, AMTE said: “Furthermore, to enable existing shareholders of the company to participate in the equity fundraising, the company is proposing to raise up to a further £0.25 million (before expenses) by way of a retail offer to be made to existing shareholders of up to 14,705,880 new ordinary shares at the Issue Price …

“Further to the announcement of the Initial Recapitalisation Plan on 25 July 2023, the net proceeds of the placing will be used to provide further time for the company and the potential new equity investor … to complete the proposed initial equity investment of £2.5 million …”

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 99%, reducing the stock market value of the firm to around £750,000.

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 CEO Alan Hollis said: “We are very pleased to have the support of existing and new shareholders as we look to put in place the Initial Recapitalisation Plan and progress towards restoring the group’s financial foundations.

“I am particularly excited to be working with a potential investor who can truly support the strategic growth and development of the business.”

In its stock exchange statement, AMTE added: “During the course of its due diligence, the Potential Equity Investor has advised that it can, where suitable, introduce companies in which it has an equity interest to AMTE Power with the view to generating offtake agreements for sodium-ion battery cells.

“It would also provide similar introductions to other companies with which it has strategic relationships, where battery technology is currently being deployed at large scale in various industries, for example in renewable energy.

Given the potential for revenue growth that, in the directors’ view, can be realised through these arrangements, AMTE Power intends to issue the Potential Equity Investor with compensatory warrants in recognition of the value of such offtake agreements.

“If required, shareholder approval for the issue of any such warrants will be sought in due course …

“The Issue Price represents a discount of approximately 81.62% per cent. to the closing middle market price of 9.25 pence per Ordinary Share on 7 September 2023, being the latest practicable date prior to the publication of this announcement.

“Following Firm Admission, the company will have 48,312,070 Ordinary Shares in issue and, following Conditional Admission, the company will have 160,908,680 Ordinary Shares in issue.

“The Placing Shares, assuming Conditional Admission occurs, will represent approximately 77.4 per cent. of the current issued share capital as enlarged by the placing, and will be issued fully paid and will rank pari passu in all respects with the company’s existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.

The board of directors of the company has been informed by the Potential Equity Investor that its due diligence is progressing; that significant strategic work has been undertaken; that further confirmatory and technical due diligence is its current focus; and that this work is now anticipated to complete by the end of October 2023.”