Efforts being made to give Thurso-based AMTE Power 'the best chance to succeed'
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Efforts to rescue a Thurso-based battery manufacturer which was facing administration have been given a £1 million boost thanks to a bridging loan.
AMTE Power told the London Stock Exchange on Tuesday afternoon that Arena Investors LP would provide the bridging loan while it sought an initial equity investment of £2.5 million.
In a statement, it said a potential new equity investor had made a conditional proposal for the amount – which would see the company through to September – and “intends to implement a financial solution” for the group beyond that date.
AMTE Power stressed that there are no guarantees over the proposal but CEO Alan Hollis welcomed the loan move.
“I am very pleased to announce the bridging loan to be provided by Arena, which buys AMTE Power the time and financial resources to allow the equity investor to complete its due diligence and internal procedures ahead of some much needed further investment in the business,” he said.
Before the announcement, Eann Sinclair, the area manager for Highlands and Islands Enterpise (HIE), stressed the priority is to try to save the 35 jobs at the AMTE Power site in Thurso.
“We have been talking to the company for a number of months now and continue to do so on a regular basis. We are aware of the challenges it is facing,” he said.
Mr Sinclair added: “AMTE is a fantastic company and an important business for the local economy. We have been working with the Scottish Government and Scottish Enterprise and other agencies to try and give it the best chance to succeed. The main thing is to try and protect the jobs but it is an ongoing situation.”
Jamie Stone, the MP for Caithness, Sutherland and Easter Ross, said: “Every single job counts in the far north.
“Some weeks ago I met with the Secretary of State for Scotland Alister Jack, and the Parliamentary Under-Secretary of State for Scotland John Lamont, and personally asked them both to consider giving AMTE Power financial support during the present critical period.”
The Liberal Democrat MP added: “I do not know whether this support might still be a possibility – and I hope it is – but this company is at the very forefront of battery technology and as such should be seen as an important research and development asset to the UK – one we can ill afford to lose.”
Maree Todd, the SNP MSP for Caithness, Sutherland and Ross, said: “I have been impressed by AMTE Power’s dedication to developing its workforce and contributing to the growth of opportunities in the far north over the years. Therefore, I sincerely hope that a viable solution can be found which enables AMTE Power to continue its operations in Thurso.”
She added: “I have written to the Scottish Government to highlight the pressing challenges AMTE Power is currently facing and the imminent threat to local jobs. I hope that the company can be supported in identifying a way forward.”
AMTE Power said earlier on Tuesday that it had nothing to add since its announcement to the Stock Exchange in London last week. The company has had talks with staff about its position and said it is “working hard to secure additional funding”.
It received £580,000 in a loan from HIE earlier this year to support its operations in Thurso. The unsecured loan was to be used for general working capital purposes. The loan was repayable after three years and incurs interest, after a 12-month interest-free period, at 6.5 per cent.
As reported in Friday’s John O’Groat Journal, AMTE is facing an “ever more critical “ financial situation.
In a statement to the Stock Exchange, the company said it “continues to be in discussions with existing and potential investors concerning raising further finance” but stressed that its position is becoming critical. At the time, AMTE Power said it “needs to implement a solution within the next few business days”.
The statement said there “can be no certainty of the outcome of these discussions, in which case putting the company into administration is ever more likely. In the event that the company is put into administration, trading of its shares ... would be suspended.”
AMTE Power was founded in 2013 and was admitted to trading on the AIM market of the London Stock Exchange in March 2021.
Its proposed gigafactory in Dundee was expected to create more than 200 jobs.
