(Alliance News) - AMTE Power PLC announced on Tuesday that it intends to appoint administrators after failing to raise funds to continue trading.
The lithium-ion and sodium-ion batter cell manufacturer entered into a subscription, placing and convertible loan agreement with Pinnacle International Venture Capital Ltd in November in order to raise GBP2.5 million.
AMTE has been informed that Pinnacle has extended the long stop date for completion of the subscription agreement to January 12, and has declined to advance funds under the convertible loan facility.
As a result, AMTE said it has no other means of securing finance and therefore will have insufficient funds to continue trading.
AMTE requested a suspension of trading on AIM on Tuesday, pending clarification of its financial position.
The company said it would be appointing FRP Advisory Group PLC as administrator, who will "manage an accelerated sale process to seek potential buyers of the business and assets of the company."
WH Ireland Ltd will resign as nominated adviser to the company upon the appointment of FRP. Should AMTE fail to appoint a replacement nominated adviser within one month of the suspension of shares from AIM, the admission of the shares to trading on AIM will be cancelled.
Shares in AMTE Power were down 9.5% at 0.86 pence each in London on Tuesday afternoon.
By Hugh Cameron, Alliance News reporter
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