(Alliance News) - AMTE Power on Friday said it will raise GBP2.1 million in fresh equity but at a steeply discounted price.
The London-based lithium-ion and sodium-ion battery cells developer and manufacturer will place 124.5 million new shares at 1.7 pence per share, well below its Thursday closing price of 9.20p. AMTE will have 160.9 million shares in issue.
AMTE Power shares fell 76% to 2.20p each on Friday morning in London following the announcement, giving the company a GBP802,000 market capitalisation.
The company aims to raise a further GBP250,000 via a retail offer of up to 14.7 million shares at the same price.
The raise is being led by WH Ireland as nominated adviser, joint bookrunner and joint broker.
The cash will provide AMTE Power with working capital until early November.
This will give AMTE Power and the potential equity investor announced back in July time to complete a proposed initial equity investment of GBP2.5 million.
AMTE Power said that the unnamed investor has said it can introduce companies in which it has an equity interest to AMTE Power with the view to generating offtake agreements for sodium-ion battery cells.
The company said due diligence on the investment is progressing with work now anticipated to complete by the end of October.
The placings are conditional to shareholder approval at a general meeting on September 25.
By Tom Budszus, Alliance News reporter
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