Battery manufacturer AMTE Power, which wants to build a gigafactory in Dundee, said it “continues to progress” discussions with an undisclosed investor.

The AIM-quoted company has a plant in Thurso and a research base in Oxford and disclosed last Friday that it is in talks with a third party about an equity placement and a convertible loan note in order to avoid administration.

“It remains the case that the group has sufficient cash until week commencing 27 November 2023,” the company re-stated today.

“However, on its own, this will not be sufficient to finance the company through to satisfaction of the conditions and to completion of the proposed subscription of £2.5 million.”

It repeated its warning that “in the event that these discussions do not conclude positively it would be likely that AMTE Power would not be able to meet its financial obligations… and there would be no alternative other than for the group to enter into administration or other form of insolvency procedure.”

The company said that in such circumstances shareholder value could be wiped out.

Following the statement its shares were down 0.1p (18.18%), valuing the company at just £750,000.