By Joe Hoppe
AMTE Power said it has conditionally raised 2.1 million pounds ($2.6 million) in a heavily discounted share placing and will raise up to a further GBP250,000 in a retail offer, to stave off insolvency and provide time for its initial recapitalization plan.
The manufacturer of lithium-ion and sodium-ion battery cells said Friday that it has conditionally placed 124.5 million new ordinary shares at a price of 1.7 pence a share, an 82% discount to its closing share price on Thursday.
The placing will be carried out in two tranches--11.9 million firm placing shares will be issued under existing shareholder authorities and the second tranche of 112.6 million shares will be issued conditional on shareholder approval, which will be sought at a general meeting on Sept. 25.
Following the admission of firm shares, the company will have 48.3 million shares in issue. Following conditional share admission, it will have 160.9 million shares in issue--with the placing shares representing around 77.4% of the enlarged company's share capital.
Assuming conditional admission occurs, proceeds will provide the company with working capital until early November. If shareholders don't approve, the company said it was likely there would be no alternative other than for it to enter administration or some other insolvency procedure.
Net proceeds will be used to provide more time for the company and a potential new equity investor, first disclosed on July 25, to complete the proposed initial equity investment of GBP2.5 million.
Write to Joe Hoppe at joseph.hoppe@wsj.com
