AMTE Power, a manufacturer of lithium-ion and sodium-ion battery cells, has announced that it has entered into agreements with private equity firm Pinnacle International Capital to access approximately £3 million ($3.7 million) in funding. This news has subsequently caused AMTE Power’s shares to soar.
Signings and Agreements
The conditional agreement states that AMTE Power will raise £2.5 million through the subscription of 147.1 million shares at a price of 1.7 pence per share. This investment will be facilitated by Pinnacle’s newly-incorporated entity, Pinnacle International Venture Capital. Additionally, AMTE Power has secured a conditional placing to raise an additional £400,000 at a rate of 0.5 pence per share, as well as a convertible loan facility of £200,000 with Pinnacle. It is important to note that the loan facility will reduce the available funds under the subscription agreement by a corresponding amount.
Boosting Working Capital
AMTE Power expects that these agreements will significantly enhance its working capital and provide financial stability until the completion of the conditional subscription. It anticipates that these funds will be sufficient until the second quarter of 2024.
Following the announcement, AMTE Power’s stock experienced a significant turnaround. After closing 22% lower at 0.43 pence on Wednesday, the shares rallied and surged by 94% to reach 0.83 pence at 1406 GMT.
Since the beginning of this year, shares in AMTE Power listed on the London Stock Exchange have suffered a substantial decrease of 98.4% in value.