Magnis Energy’s breach warning

The market operator has warned Magnis Energy Technologies it will remain suspended from trade, after admitting it wrongly told shareholders its battery gigafactory had booked revenues and churned out cells in December.

In a market update on Tuesday, Magnis said it incorrectly told shareholders at its annual general meeting that the Imperium3 New York battery gigafactory “communicated that they are on target to achieve a daily production run of 300 cells by December 2023”.

Instead, Magnis told investors it had “since been informed by the new board of Inc that this is not the case and that there was no production in December 2023, nor any revenue generated in that month”.

This is despite Magnis (US) managing director Hoshi Daruwalla telling shareholders at the AGM the company was planning on growing production to 1000 cells per day.

“If you can take my word for it, contracts are not an issue iM3 faces,” Mr Daruwalla told shareholders at the AGM.

Magnis remains suspended after the Australian Securities Exchange pulled the company from trading after The Australian revealed it had failed to disclose to shareholders on the eve of its AGM that it had lost control of its key North American asset.

Atlas Credit Partners moved to strip Magnis of its control of iM3NY after slapping the company with eight breaches of a $US100m ($149m) loan agreement. Magnis attempted to seize control of the battery factory by forcing the appointment of a new director to the board of the joint venture.

The move triggered a breakdown in relationships between Magnis and its key technology partner Charge CCCV, which is part-owned by Magnis, which also holds the exclusive licence to use its technology in North America.

Magnis said it was keeping the market informed after a formal court outcome, attaching court orders dated January 3, but only published the update on January 10. It also said Atlas Credit Partners had extended a $US3.3m lifeline to iM3NY to fund working capital.