Struggling battery producer AMTE Power secures lifeline loan

AMTE Power announced plans last year for a large factory at the former Michelin tyre plant in Dundee

A Scottish battery producer which has been battling to stay afloat has secured a £1m bridging loan.

AMTE Power said the loan facility with Arena Investors would give it more time to secure a new equity investor.

Last week, the Thurso-based company reported that it was just days away from going into administration following a financial crisis.

The loan is expected to keep AMTE going until September, while it completes a deal with the unnamed investor.

The investor has conditionally proposed investing £2.5m in AMTE Power for 80% of the issued share capital of the company.

AMTE, which produces specialist batteries, including power cells for high-performance cars, revealed plans last year to build a large factory at the former Michelin tyre plant in Dundee.

In a stock exchange announcement, chief executive lan Hollis said the bridging loan "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".