Magnis Energy Technologies Ltd (ASX:MNS) Provides ASX Compliance Response
Magnis Energy Technologies Ltd (ASX:MNS) has submitted a comprehensive response to the ASX regarding its compliance queries, addressing the status of various agreements and its operational updates.
Operational and Corporate Overview
The company clarified that its subsidiary, Imperium3 New York Inc. (Imperium3), is currently operating independently following a series of developments in December 2023. Key points noted that while Imperium3 entered a US$100 million secured debt agreement, it was not backed by Magnis. Subsequent to the debt agreement, there were significant changes in the board structure of Imperium3, leading to suspended trading of Magnis shares on 8 December 2023.
Magnis continues to rely on information from Imperium3 directors due to the lack of operational control. The latest financial reporting from Imperium3 reflects a revenue of US$9,000 for the period up to 30 September 2024.
Agreement Status Updates
Among the agreements mentioned, the status of the Energence Agreement remains under ongoing discussions without a binding contract executed. The company was unable to provide an estimate for potential revenues linked to this and other agreements due to the fluid nature of negotiations. Additionally, the Martac and EGYAI Agreements are also in a technical review status with updated delivery timelines set for January 2025.
The Tier 1 EV Manufacturer Agreement is still active with ongoing commercial and technical discussions. However, significant external factors continue to influence the development timelines of the Nachu Project, which is now projected to commence construction in Q2 2026 and reach first production by Q4 2027.
Future Outlook
Magnis expects to release its 2024 audited financial statements by late January 2025. The audit, however, may potentially qualify with an emphasis on its ability to continue as a going concern. The company confirms its ongoing commitment to comply with the ASX Listing Rules, with board-approved responses to the ASX’s inquiries.
In its pursuit of developing the Nachu Project, Magnis aims to secure necessary funding and complete regulatory requirements, essential for proceeding with the planned mining operations.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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