AMTE Power Plc announced that it has agreed a new secured £1.0 million loan facility with Arena Investors LP in order to provide sufficient time for the Company and a potential new equity investor to complete a proposed initial equity investment of £2.5 million . Funds under the Facility will be made available to the Group in two equal tranches of £0.5 million each, the first of which will be drawn down within two business days. The second tranche will be available to be drawn down upon mutual written consent between Arena and the Company.

The Facility, which bears no interest but is fully secured over the assets of the Company, is repayable in full at 110 percent of the total amount drawndown on the earlier of: (a) the completion of the Proposed Subscription; or (b) the date falling three months following entry into the Facility. In addition to providing this Facility, Arena has agreed to relinquish the conversion rights attaching to its pre-existing convertible bond facility (the "CBF"), announced on 17 October 2022, of which £4.0 million has been drawn down to date, with £3.75 million outstanding. The Company and Arena are due to formalise an agreement to repay amounts drawn down under the CBF as to £1.0 million on the first anniversary of the bridge loan agreement, subject to available funds, with the balance due on the second anniversary.

In consideration for this amendment, the Company and Arena will enter into documentation granting Arena warrants to subscribe for 2 percent of the share capital of the Company as enlarged by the Initial Recapitalisation Plan at a 100 percent premium to the issue price thereunder. The warrants will become exercisable 12 months following the subscription under the Initial Recapitalisation Plan with a duration of 24 months from issue. Additionally, the Company has granted Arena security over the Company's assets for the full loan.