(Alliance News) - Amte Power PLC on Friday said it made "good progress" in negotiations with an unnamed equity investor over a proposed GBP2.5 million subscription, which it needs to complete in order to avoid entering administration.
The London-based lithium-ion and sodium-ion battery cells developer and manufacturer said it was also conducting due diligence on the investor.
Amte Power said it now has sufficient cash until the week commencing November 27. However, this, on its own, will not be sufficient to finance the company in satisfying the conditions for completing the proposed subscription.
It is currently in discussions with equity providers and other interested parties to provide it with sufficient bridging finance through to completion, anticipating it will make a further announcement early next week.
If these discussions "do not conclude positively", Amte Power said it would be likely that it would be unable to meet its financial obligations ahead of completion of the proposed subscription.
This would leave "no alternative" other than for the group to enter administration or "some other form of insolvency procedure", Amte Power said, under which the "prospects for recovery of value, if any, by shareholders would be uncertain".
Shares in Amte Power closed down 0.4% to 0.67 pence each in London on Friday.
By Greg Rosenvinge, Alliance News senior reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.