AMTE Power PLC (AIM:AMTE) shares plummeted 55% in early trade Thursday after the maker of lithium-ion and sodium-ion battery cells said it needs to raise new funds within the next four weeks.
Following an announcement in December last year that it would need extra financing by April 2023 to meet operating costs, the company drew down a new £580,000 loan on 31 March and a £1mln convertible loan on 25 April.
It is now holding talks with potential investors about raising further new funds, but stressed that the outcome of the discussions are not certain.
If it fails to find extra funding, “the prospects for recovery of value, if any, by shareholders would be uncertain”, AMTE Power said.
In April, the company hinted it could move operations across the Atlantic due to attractive subsidies in the US. At the time, AMTE said it was difficult to justify keeping production in the UK, given the vast subsidies offered to clean technology companies under the near-US$400bn US Inflation Reduction Act.
At 8.45am, AMTE Power shares were down 28p to 23.00p.