AMTE.L Regulatory News (AMTE)

12 March 2021

AMTE Power plc

ADMISSION TO TRADING ON AIM AND FIRST DAY OF DEALINGS

AMTE Power plc ("AMTE Power", the "Company" and together with its subsidiary undertakings, the "Group"), a developer and manufacturer of lithium-ion battery cells for specialist markets, is pleased to announce the admission of its entire issued and to be issued ordinary share capital to trading on the AIM Market of the London Stock Exchange ("AIM"). Admission will occur at 8.00 a.m. today, under the ticker "AMTE" and the ISIN: GB00BNQRZZ55.

Following a successful and oversubscribed placing of, in aggregate, 7,826,816 new and existing Ordinary Shares, approximately £13.7 million (before expenses) was raised for the Company and the Selling Shareholders (the "Placing").

WH Ireland Limited ("WH Ireland") is acting as nominated adviser and, together with SI Capital Limited ("SI Capital" and, together with WH Ireland, the "Joint Brokers"), acted as joint bookrunner and joint broker to the Company in relation to the Placing and Admission.

Key highlights

· The Placing, which is conditional upon, amongst other things, Admission, comprises a placing of 7,402,438 new Ordinary Shares (the "New Shares") and 424,378 existing Ordinary Shares (the "Sale Shares"), in each case, at 175 pence per Ordinary Share (the "Placing Price") with institutional and other investors.

· Based on the Placing Price, the market capitalisation of the Company will be approximately £61 million on Admission.

· On Admission, the Company will have 34,666,027 Ordinary Shares in issue and a free float of approximately 48 per cent.

· The Placing of the New Shares has raised gross proceeds of approximately £12.9 million for the Company.

· The Placing of the Sale Shares has raised gross proceeds of approximately £740,000 for the Selling Shareholders.

· The Placing attracted strong support from institutional and private investors and was significantly over-subscribed.

· On Admission, the Group's senior management will own approximately 17 per cent. of the issued Ordinary Shares.

· The Company intends to use the net proceeds of the Placing of the New Shares to finance the working capital requirements of the Company, prior to income generation from the commercialisation of its battery cell portfolio.

The Company's AIM admission document (the "Admission Document")is available to view on the Company's website: www.amtepower.com/investors.

Kevin Brundish, CEO of AMTE Power said:

"We are naturally delighted by the investor response from both new and existing shareholders. The high demand has enabled us to raise additional funds which will further enhance the commercial prospects of our portfolio of battery cells. The switch to electrification is clearly happening and not just in the automotive sector but across multiple markets. These are trends we anticipated happening 8 years ago when we created AMTE and today's listing has significantly strengthened our ability to make the most of this switch to battery power."

Business overview

AMTE Power was co-founded in 2013 by Kevin Brundish, together with several others, including former colleagues from QinetiQ, with the objective of developing a portfolio of highly differentiated, lithium-ion and lithium-ion derivative battery cells to meet the needs of specialist customers. Such customers, which include manufacturers of high-performance vehicles and specialist equipment, are not, in the Directors' experience, the primary focus of the international battery cell manufacturers, thereby creating a significant and scalable opportunity for the Company.

· the Company's highly experienced management team has implemented a distinctive strategy of not only accessing intellectual property, but also developing products based thereon to address its specialist customers' requirements, with the intention in due course of utilising its facilities to manufacture cells on a commercial scale;

· it has been working in collaboration with a significant number of industrial businesses, including nine UK-based leading automotive manufacturers and component suppliers;

· prior to the Placing, it had secured an aggregate of approximately £9.1 million of equity finance, been directly awarded approximately £5.8 million of public sector grants and has generated commercial income to date of approximately £2.5 million;

· it is the Directors' understanding based on their market knowledge that the Company is well placed as one of only five UK commercial battery cell manufacturers with its purpose-built cell manufacturing facility at Thurso, Scotland, which has the second largest cell manufacturing capacity in the UK;

· in addition to its Thurso facility, the Company has entered into a framework agreement governing access to the UK Battery Industrialisation Centre (the "UK BIC") cell manufacturing facility and, in 2022, intends to commit to building a new UK manufacturing facility with a capacity of approximately 2GWh per annum; and

· the Company has three highly differentiated battery cells in development, with one expected to enter production in each of the next three years, and a pipeline of technologies for future development.

For further information contact:

Important notices

Capitalised terms used in the Admission Document have the same meanings in this announcement unless the context provides otherwise.

This announcement includes statements which are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the directors' current intentions, beliefs or expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and the Company's markets. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual results and developments could differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement are based on certain factors and assumptions, including the directors' current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's operations, results of operations, growth strategy and liquidity. Whilst the directors consider these assumptions to be reasonable based upon information currently available, they may prove to be incorrect. Save as required by applicable law or regulation, the Company undertakes no obligation to release publicly the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in the directors' expectations or to reflect events or circumstances after the date of this announcement.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement.