MNS - Magnis Energy Technologies

[Dona Ferentes]

on the business side, dramas aside;
New York Lithium-ion Battery Plant Begins Commercial Production

• Commercial production has commenced at the iM3NY New York Lithium-ion Battery Plant based in Endicott, New York
• Initial production of several thousand cells expected in the next month which will ramp up to 15,000 cells/day as production scales up to an annual production rate of 1.8GWh
• First few weeks of production will be tested for quality assurance before sales start with first revenues expected in late September
• Green credentialed batteries produced to use C4V’s BMLMP Cathode Technology which DOES NOT contain nickel or conflict metals such as cobalt
• Green hydroelectricity will be used for production
• Future plans to increase annual capacity to 38GWh by 2030

(DNH)

 

[Dona Ferentes]

Trading halt...

... pending an announcement to the market in relation to a material transaction, the signed agreement for which was received from the counterparty over the weekend;

scuttlebutt .. Tesla?

 

[Dona Ferentes]

Magnis Energy, listed on the ASX with a $390 million market cap, is understood to have a deal to supply Tesla with active anode material from a proposed new plant in the United States.

Industry sources in the United States reckon the binding offtake deal is considerably bigger than an agreement Tesla struck with another ASX-listed graphite play Syrah last year.
The industry has been abuzz with chat that Tesla was set to sign another Australian-based manufacturer as a supplier. Sources said Tesla’s been through testing of the company’s technology, to ensure output would match its requirements and had put forward a binding contract with fixed prices and take or pay terms

 

[Dona Ferentes]

Nuttin' to see here

Referring specifically to the section “Request for information” and dealing with each item in order.
1. Magnis is unaware of how the information in the Announcement appeared in the Article. Furthermore, the information the subject of the Announcement was not provided to the Australian Financial Review (or to any other news media organisation) by Magnis (or by any of its officers or executives) prior to the Announcement's release by Magnis on MAP.
2. Magnis has robust arrangements in place which seek to ensure compliance with Listing Rule 15.7. In particular:
a. Magnis' Continuous Disclosure Policy specifically obliges Magnis to comply with Listing Rule 15.7 (this requirement is noted in section 11 of that Policy);
b. Magnis' officers and executives understand the requirements of (and the important policy basis underpinning) and have complied with Listing Rule15.7; and
c. (in any event) Magnis' securities were in trading halt session state when the Article was published (meaning that there no risk of any uninformed trading in the market for Magnis' shares on ASX).
3. Magnis is of the opinion that its current arrangements in relation to Listing Rule 15.7 are adequate, are operating effectively and that there has been no breach of Listing Rules ...

...so we can all go back to sleep.

 

[frugal.rock]

And sinking further into slumber... new 52 week lows nearly daily lately.

On the bright side, it does look like the shorters were starting to ease up on it, but that's some laggy data.

 

[Dona Ferentes]

And sinking further ... new 52 week lows nearly daily lately.
On the bright side, it does look like the shorters were starting to ease up on it, but that's some laggy data.

Lags? Conviction !

And careless, too.

 

[Dona Ferentes]

oh dear...
.
The ASX says it will not allow Magnis Energy Technologies to trade on the exchange after auditors raised concerns about the company’s finances.

Magnis’ shares will stay halted until the company can reassure the bourse that it is solvent after it posted a $72.7 million loss and cash outflows of $58.6 million in the 12 months to June 30.

Magnis has net current assets of just $30 million including cash reserves of $22 million, according to accounts filed earlier this week

 

[Sean K]

oh dear...
.
The ASX says it will not allow Magnis Energy Technologies to trade on the exchange after auditors raised concerns about the company’s finances.

Magnis’ shares will stay halted until the company can reassure the bourse that it is solvent after it posted a $72.7 million loss and cash outflows of $58.6 million in the 12 months to June 30.

Magnis has net current assets of just $30 million including cash reserves of $22 million, according to accounts filed earlier this week

This has been dodgy for some time. I'm sure David Ross at the Oz will be out with an article on them imminantely.

 

[Sean K]

This has been dodgy for some time. I'm sure David Ross at the Oz will be out with an article on them imminantely.

LOL

Former market darling Magnis Energy Technologies insists it is solvent and in negotiations to secure funding from new customers as it faces a continued market suspension over concerns surrounding its financial future.

As it entered its fifth day of suspension, while nursing a cratering of its share price, Magnis revealed it was in line to secure $US2m ($3.1m) as part of a $US13.25m grant program from the New York State’s Empire State Development fund.

But Magnis, which was pulled for the second time from trading by the Australian Securities Exchange’s listings compliance team on Tuesday, is still no closer to returning to the trading boards as questions linger over its financial future.

Magnis US managing director Hoshi Daruwalla told The Weekend Australian the company was “solvent”, noting it was “working to secure more funding”.

Mr Daruwalla said Magnis and C4V, which provides the designs of batteries at the Imperium3 NY battery factory, were in advanced talks with “foreign private institutional companies and governments regarding offtake agreements of the lithium cells produced at the iM3NY battery plant”.

“These negotiations include an element of a forward purchasing deposit, which is intended to cover the funds needed by the business in the short term,” he said.

 

[Sean K]

David Ross isn't the only one keeping check on this.

 

[Dona Ferentes]

Nuttin' to see here ...

...so we can all go back to sleep.

Quarterly out, back trading. down 20 per cent. and gotcha

...leave this to the lawyers

Spectrum IT Agreement
In March 2021, the Company entered into a 2 year agreement with Spectrum IT in relation to the provision of IT services to the Company . This was extended in March 2023 for a further 12 months expiring March 2024.
In this regard, and in accordance with the requirements of the Listing Rules to disclose the material terms of any contract or agreement that the Company has with a related party or an associate of a related party of the Company (or any changes to any such agreement), the Company sets out the material terms of the Spectrum IT Agreement in the Schedule to this announcement.

not for me. DNH

 

[Dona Ferentes]

these things are best avoided.
.
down 50 per cent to 4c range.

... The Company advises that in the event the Lender enforces the security against the assets of the Borrower, then that of itself would have no impact on the Company’s solvency. The Company draws attention to the statement made in the recent September 2023 quarterly cash flow statement that the directors are engaged in seeking additional capital from the debt and equity markets and believe these efforts are more likely than not to be successful .

all smiles. nothing astray here.

DNH

 

[frugal.rock]

I like how they don't address any of the apparent 6 breach of covenants.
That last one is interesting re equipment not performing to specification.

 

[Sean K]

This is a slow moving train wreck.

Magnis Energy Technologies has been stripped of control of its key battery “gigafactory” Imperium3 New York (iM3NY) after lenders swooped on the company last week.

Court papers reveal Magnis has admitted to a judge in the Delaware Chancery courts that “Imperium3 is under the control of the lender” but failed to reveal the change to the markets.

Instead Magnis has stuck to carefully worded statements suggesting the lenders who advanced a $100m, intellectual property-backed loan to iM3NY were intending to “change the composition of the board” of iM3NY and “take control of its operating and financing activities”.

But documents reveal Atlas Credit Partners has stripped Magnis of its control of the iM3NY board, removing all but one of the directors, and appointing two of their own.

Only Charge CCCV director Shailesh Upreti, who is currently locked in a legal battle with Magnis, has retained his seat on the board.

Magnis chair Frank Poullas and directors Claire Bibby and Giles Gunesekera have been dumped from the board of the battery factory Magnis has spent almost six years building.

 

[divs4ever]

another bullet dodged ,

sometimes missing opportunities is a good thing

 

[Garpal Gumnut]

It can't get worse than than this, or can it?

gg

 

[HelloU]

Magnis has now been suspended for around 4 months and ASX does not appear to be cutting them any slack. Magnis announced at the AGM in late 2023 that the New York based battery factory, that Magnis majority owns, was on target to produce 300 batteries in December that would commence the battery sales revenue stream for them. At the start of January they suddenly announced that not a single battery had been manufactured in December.

That coincides with ASX taking a lot of interest in Magnis and suspending them. 11 March 2024 ASX released many many pages of correspondence between ASX and Magnis concerning the reasons for the suspension.

 

[Sean K]

What a disaster.

 

[farmerge]

What a disaster.

View attachment 175943

@Sean K so with a history like this what will the penalty be, a slap on the wrist or sometime akin to a pile of granite rocks and a sledge hammer????

 

[mullokintyre]

We often hear about the nimble potential of Australian companies.
Unfortunately, its eems that there are just as many nimble get rich/lose money schemes in Oz Tecnology.
This seems particularly so in the alternative energy secto.
Fresh on the heels of the failure of EV Charger manufactruer, Tritum, Refflow Batteries going into Administration, we now hear that Magnis is in severe trouble.
from Evil Murdoch Press

So far, no batteries have been made.
Does not look like it will still be around next year.
Mick