# AMTE Power Placing to raise £2.1 million and proposed retail offer to raise up to £0.25 million

- Link: https://www.directorstalkinterviews.com/amte-power-placing-to-raise-2.1-million-and-proposed-retail-offer-to-raise-up-to-0.25-million/4121126978
- Published: 2023-09-08T07:14:24+01:00
- Author: Jacob Brown

**AMTE Power Plc** ([LON:AMTE](https://www.directorstalkinterviews.com/company/amte-power-plc/amte.l)),
a leading developer and manufacturer of lithium-ion and sodium-ion battery cells
for specialist markets, has announced that it has conditionally placed 124,476,380
new ordinary shares of 0.5 pence each in the capital of the Company at a price of
1.7 pence per Placing Share to raise approximately £2.1 million (before expenses).

Furthermore, to enable existing shareholders of the Company to participate in the
equity fundraising, the Company is proposing to raise up to a further £0.25 million(
before expenses) by way of a retail offer to be made to existing Shareholders of
up to 14,705,880 new Ordinary Shares at the Issue Price via the Bookbuild Platform.
The Retail Offer will be launched following Conditional Admission (as defined below)
becoming effective. A separate announcement will be made in due course regarding
the Retail Offer and its terms. For the avoidance of doubt, the Retail Offer is 
not part of the Placing.

WH Ireland Limited ([LON:WHI](https://www.directorstalkinterviews.com/broker/wh-ireland))
is acting as nominated adviser, joint bookrunner and joint broker  in connection
with the Placing. SI Capital Limited is acting as joint bookrunner and joint broker
in connection with the Placing.

**The Initial Recapitalisation Plan**

Further to the announcement of the Initial Recapitalisation Plan on 25 July 2023,
the net proceeds of the Placing will be used to provide further time for the Company
and the potential new equity investor (the **“Potential Equity Investor”,** referred
to as the Equity Investor in the Previous Announcement) to complete the proposed
initial equity investment of £2.5 million.

During the course of its due diligence, the Potential Equity Investor has advised
that it can, where suitable, introduce companies in which it has an equity interest
to AMTE Power with the view to generating offtake agreements for sodium-ion battery
cells. It would also provide similar introductions to other companies with which
it has strategic relationships, where battery technology is currently being deployed
at large scale in various industries, for example in renewable energy.

Given the potential for revenue growth that, in the Directors’ view, can be realised
through these arrangements, AMTE Power intends to issue the Potential Equity Investor
with compensatory warrants in recognition of the value of such offtake agreements.
If required, shareholder approval for the issue of any such warrants will be sought
in due course.

The board of directors of the Company has been informed by the Potential Equity 
Investor that its due diligence is progressing; that significant strategic work 
has been undertaken; that further confirmatory and technical due diligence is its
current focus; and that this work is now anticipated to complete by the end of October
2023.

**Arena Loan**

The Company has, to date, drawn £0.5 million under the loan facility announced in
the Previous Announcement with the remaining balance of £0.5 million available for
drawdown upon agreement between Arena Investors LP and AMTE Power.

Pursuant to the terms of the Arena Loan, AMTE Power shall be obliged to repay Arena
an amount equal to 50 per cent. of the amount which the aggregate net proceeds of
the Placing and the Retail Offer received by AMTE Power exceeds £1.5 million, up
to a maximum repayment amount of £0.6 million, based on the amount currently drawn.

**The Placing**

The Placing will be conducted in two tranches, with the first tranche of 11,879,770
Placing Shares being issued and allotted under AMTE Power’s existing shareholder
authorities and the second tranche of 112,596,610 Placing Shares being issued and
allotted subject, among other things, to the necessary resolutions required to implement
the Conditional Placing being duly passed by Shareholders at a general meeting of
shareholders which is proposed to be held at Scotland House, 58 Victoria Embankment,
London EC4Y 0DS at 10.00 a.m. on 25 September 2023. 

Application has been made to the London Stock Exchange for the admission of the 
Firm Placing Shares to trading on the AIM market. It is anticipated that Firm Admission
will take place on or before 8.00 a.m. on 11 September 2023.  Application will be
made to the London Stock Exchange for the admission of the Conditional Placing Shares
to trading on the AIM market and Conditional Admission will take place, subject 
to the passing of the Resolutions, on or before 8.00 a.m. on 26 September 2023.

The Issue Price represents a discount of approximately 81.62% per cent. to the closing
middle market price of 9.25 pence per Ordinary Share on 7 September 2023, being 
the latest practicable date prior to the publication of this announcement.

Following Firm Admission, AMTE Power will have 48,312,070 Ordinary Shares in issue
and, following Conditional Admission, the Company will have 160,908,680 Ordinary
Shares in issue. The Placing Shares, assuming Conditional Admission occurs, will
represent approximately 77.4 per cent. of the current issued share capital as enlarged
by the Placing, and will be issued fully paid and will rank _pari passu_ in all 
respects with the Company’s existing Ordinary Shares, including the right to receive
all dividends and other distributions declared, made or paid after the date of issue.

Assuming Conditional Admission occurs, the proceeds of the Placing, net of expenses,
will provide the Company with working capital until early November 2023.

The Company will make a further announcement in due course with respect to the publication
of the circular, containing further details of the Placing and convening the General
Meeting (the **“Circular”**). Such announcement will also set out the expected timetable
for the Conditional Placing. Once published, the Circular will also be made available
on the Company’s website at [www.amtepower.com](http://www.amtepower.com/).

**Importance of the vote**

If the resolutions are not approved by Shareholders at the General Meeting, the 
Conditional Placing and the Retail Offer would not proceed as currently envisaged
and, as such, the anticipated net proceeds of the Conditional Placing and the Retail
Offer would not become available to AMTE Power. Accordingly, in light of the Group’s
reducing cash position, it would be likely that AMTE Power would not be able to 
meet its financial obligations as they fall due and there would be no alterative
other than for the Group to enter into administration or some other form of insolvency
procedure under which the prospects for recovery of value, if any, by Shareholders
would be uncertain.

**The Retail Offer**

The Company values its Shareholder base and believes that it is appropriate to provide
its eligible existing retail Shareholders in the United Kingdom the opportunity 
to participate in the Retail Offer.

To enable other existing Shareholders not able to participate in the Placing, an
opportunity to subscribe for additional Ordinary Shares and to mitigate an element
of dilution, the Company is proposing to raise up to an additional £0.25 million(
before expenses) by way of the Retail Offer following the close of the Company’s
General Meeting.

The Company shall make a further announcement shortly after Conditional Admission
becoming effective containing further information on how existing Shareholders can
participate in the Retail Offer. The Retail Offer may not be fully subscribed.

> **Alan Hollis, Chief Executive Officer at AMTE Power, said:**
> “_We are very pleased to have the support of existing and new shareholders as 
> we look to put in place the Initial Recapitalisation Plan and progress towards
> restoring the Group’s financial foundations. I am particularly excited to be working
> with a potential investor who can truly support the strategic growth and development
> of the business.”_

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