Battery manufacturer AMTE Power has raised new funds as talks with a potential equity investor are expected to complete in the coming weeks.

The company, which has a plant in Thurso and is hoping to build a large factory in Dundee, has raised £2.1 million before expenses in a placing of shares priced at 1.7 pence per share.

It is proposing to raise up to a further £0.25m (before expenses) through a retail offer to existing shareholders.

The Placing will be used to provide further time for the company and a potential new equity investor to inject an initial equity investment of £2.5m.

AMTE said the Investor’s due diligence is progressing is expected to complete by the end of October. It had warned earlier in the summer that cash was running out and putting the firm’s future in doubt.

Alan Hollis, chief executive, 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.”