Magnis Energy Technologies has ceased payments to its chair and directors as part of efforts to prevent insolvency after losing control of its key North American asset to lenders, The Australian has reported.
The company, known for its involvement in batteries and graphite, revealed in a market update on Wednesday, January 31, that it had just 0.2 quarters of funding remaining, with $532,000 cash in the bank.
However, Magnis informed investors that it had secured a $4.6 million short term loan “from sophisticated and professional investors” set to tide the company over.
This loan is set to be due next month on March 1, and is being charged at 5 per cent per month.
Magnis Chair Frank Poullas has been removed from the iM3NY board and lost possession of the company's main battery “gigafactory."https://t.co/tsrSnpt9mT
— The Greek Herald (@greek_herald) December 6, 2023
This comes as the company’s long-time chair Frank Poullas, and its key directors Peter Tsegas, Fabrizio Pirelli and Hoshi Daruwalla have all stopped being paid by Magnis Energy in a bid to “preserve funds.”
The company said Mr Poullas and Mr Tsegas had not been paid since July 1, 2023.
This news follows Magnis dumping its subsidiary Imperium3 NY from its books after lenders took over the battery Gigafactory after multiple breaches of a $US100m ($152m) loan facility.
Source: The Australian.
