AMTE Power, a leading manufacturer of lithium-ion and sodium-ion battery cells, experienced a significant drop in shares, falling by 23%. The company disclosed on Wednesday that while discussions regarding funding are ongoing, it has not yet been able to raise the necessary funds. As a result, AMTE Power may be forced to enter into administration, potentially leaving shareholders with no returns.
At the time of writing, shares were valued at 0.43 pence, down by 0.12 pence at 1441 GMT.
Insufficient Funds for Planned Share Subscription
AMTE Power stated that it currently possesses sufficient cash reserves until November 27; however, these funds will not be enough to finance the company until the completion of its anticipated share subscription of £2.5 million ($3.1 million).
The company emphasized that if efforts to secure the required funding are not successful, it will be unable to meet its financial obligations as they arise.
Uncertainty Surrounding Shareholder Recovery
According to AMTE Power, “there would be no alternative other than for the group to enter into administration or other form of insolvency procedure under which the prospects for recovery of value, if any, by shareholders would be uncertain.”