Libertine Holdings PLC (AIM:LIB), a developer of linear generator technology, has received a potential investment offer of £2.0 million from strategic investors in India and the United Arab Emirates.
This proposed new funding is subject to completion of due diligence by both Libertine and the investors. Discussions are ongoing, the company said.
The plan is to issue new shares at 2.1p each with the investors each taking a £1 million tranche of stock.
If successful, the investment would fund the company until June 2025. However, Libertine anticipates needing additional funds beyond this period as it does not expect to reach a breakeven point by then. The company may seek further investment from new and existing investors for additional working capital.
Separately, the board has concluded there is no prospect of an offer for the entire company and has terminated the formal sale process.
If additional capital cannot be secured by mid-June 2024, the board may seek to delist from AIM and re-register as a private company to undertake a solvent wind-down before cash runs out in mid-July 2024. Further announcements will follow as necessary.