AMTE Power gets lifeline to pursue battery plan
Battery manufacturer AMTE Power has been thrown a financial lifeline by global private equity firm Pinnacle International Venture Capital in a £3m issue of shares and debt.
Pinnacle will subscribe for shares at 1.7p share, a newly incorporated entity managed by Pinnacle International Capital Corp, to raise £2.5m and giving it majority control through an 80% stake.
A conditional placing agreement will raise a further £400,000 at 0.5p per share while a £200,000 convertible loan facility with Pinnacle has also been put in place.
Any amounts advanced to AMTE Power under the convertible loan facility will reduce the amount available to the company under the subscription agreement by a corresponding amount.
The placing and the convertible loan facility, announced in a stock market statement yesterday, are intended to provide the group with sufficient working capital until completion of the subscription agreement.
AMTE Power, which has a plant in Thurso and hopes to build a gigafactory in Dundee, intends to cancel trading in its shares on the Alternative Investment Market and seek a listing on the main market.
The placing shares will represent 32.5% of the issued share capital.
Alan Hollis, chief executive at AMTE Power, said: “We are delighted to receive the continued support from both our existing and new shareholders. It is also a very positive indication of intent from Pinnacle who are supporting AMTE Power with a CLN to help complete the recapitalisation plan.
“I look forward to making more positive progress as we move towards the successful completion of the Pinnacle investment.”