Battery firm AMTE Power secures £1m lifeline
Battery manufacturer AMTE Power has secured a £1 million lifeline while talks continue with a potential new equity investor to provide further funding.
The company, which has a plant in Thurso and wants to build a gigafactory in Dundee, announced last Thursday that it was running out of money and could appoint administrators if it did not find new funds.
The loan facility has been provided by Arena Investors in order to provide sufficient time for the company and its new potential investor to complete a proposed initial equity investment of £2.5m.
Funds under the facility will be made available to the group in two equal tranches of £0.5m each, the first of which will be drawn down within two business days.
The second tranche will be available to be drawn down upon mutual written consent between Arena and the company. The facility, which bears no interest but is fully secured over the assets of the company, is repayable in full at 110% of the total amount drawn down on the earlier of: (a) the completion of the Proposed Subscription; or (b) the date falling three months following entry into the facility.
In addition to providing this Facility, Arena has agreed to relinquish the conversion rights attaching to its pre-existing convertible bond facility announced on 17 October 2022, of which £4m has been drawn down to date, with £3.75m outstanding.
The proposed equity investor has indicated that, following any subscription and at its own discretion, it intends to implement a financial solution for the group, including providing for future funding requirements.
“At this stage, discussions on the Initial recapitalisation plan remain at an early stage and there can be no certainty that these discussions will be successfully concluded, nor the terms or timing thereof,” said the company in a statement.
Alan Hollis, CEO at AMTE Power, said: “I am very pleased to announce the bridging loan to be provided by Arena, which buys AMTE Power the time and financial resources to allow the equity Investor to complete its due diligence and internal procedures ahead of some much needed further investment in the business.”