Amte Power Receives Share-Subscription Proposal and Loan Facility

Shares of Amte Power experienced a significant boost on Tuesday following the announcement of a promising share-subscription proposal from a new investor. Additionally, the company has secured a loan facility to support its initial recapitalisation plans.

Share-Subscription Proposal

Amte Power, a London-listed manufacturer specializing in lithium-ion and sodium-ion battery cells, revealed that it has received a proposal for a share subscription from an undisclosed potential equity investor. Under certain conditions, the investor intends to inject GBP2.5 million into the company through the subscription of 147.0 million new shares, priced at 1.7 pence per share. Notably, this price represents a considerable discount of 57% from Monday’s closing price of 4.0 pence. If the subscription is completed, the investor will hold 80% of Amte’s total share capital.

The proposed share subscription, if successful, will provide Amte with sufficient financial resources to sustain operations until September 2023.

Loan Facility Agreement

In addition to the share-subscription proposal, Amte Power has secured a GBP1.0 million loan facility with Arena Investors. This funding agreement not only bolsters the company’s financial position but also allows time for due diligence on the new investment.

Earlier in the week, Amte Power experienced a decline in shares as it faced an increasingly critical financial situation. However, with the share-subscription proposal and the loan facility, the company aims to overcome these challenges and avoid potential administration.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts