Magnis Energy, once a promising ASX-listed energy company, has sold its flagship American lithium-ion battery factory to Japanese car parts maker Musashi for $US10 million ($16 million), marking the end of its American battery ambitions.
The sale follows significant financial losses, including nearly $95 million from shareholder investments and $100 million lost by lenders backing the New York-based Imperium3 gigafactory.
Magnis, led by chairman Frank Poullas, is facing legal action from the Australian Securities & Investments Commission (ASIC) for failing to disclose crucial information to shareholders.
ASIC alleges that the company knowingly misled investors about the struggling status of its iM3NY factory, which could not meet production targets and suffered from significant manufacturing defects.
Poullas, who declined to comment, is under scrutiny for allowing the continued promotion of the factory’s success despite these issues.
As Magnis seeks readmission to the ASX, it faces further challenges, including the failure to file full-year and half-year accounts, despite repeated assurances.
The company is also in the process of negotiating a $10 million deal for its Tanzanian graphite project, but it must first meet ASX’s strict requirements.
Magnis has been shedding directors and is relying on high-interest loans to stay afloat.
Source: The Australian.
