AMTE Power PLC (AIM:AMTE), the lithium and sodium battery producer, has announced a proposal to enter into a £5mln convertible bond facility with Arena Investors LP after signing a production contract with the UK Battery Industrialisation Centre (UKBIC) for its six-minute re-chargeable Ultra High Power Cells.
AMTE expects the proposed facility will give it the financial capability and security to execute this, and any future contracts, until the second quarter of 2023, for its cells which will be produced at UKBIC and Thurso - the UK’s second-largest cell manufacturing facility.
Funding provided by the proposed facility will allow AMTE to conclude commercialisation of each of its three core cells, as well as meeting operating costs to produce and sell cells into the electric vehicle (EV) industry and the energy storage sector.
Arena is set to provide the interest-free, unsecured bond facility in three instalments and will have the ability to convert outstanding amounts into shares.