Here's why the Magnis (ASX:MNS) share price is halted

Shares in the lithium-ion battery manufacturer have been frozen ahead of a potential capital raise

The Magnis Energy Technologies Ltd (ASX: MNS) share price won't be going anywhere today.

Shares in the lithium-ion battery manufacturer entered a trading halt before the start of today's session.

Let's take a look at why shares in Magnis are in a halt.  

An ASX share investor holds his hand out in a stop sign

Image source: Getty Images

Magnis share price halted pending capital raise

Earlier today, shares in Magnis were placed in a trading halt at the request of the company.

In a release to the market, Magnis requested the trading halt pending an announcement relating to a capital raise.

The share price will remain frozen until either an announcement is made or until the start of trading this Thursday.

Apart from that, Magnis did not provide further information on how much the company was looking to raise or where funds will be directed.

More on Magnis

Magnis is an Australia-based producer of lithium-ion battery cells. The company has three core areas of operations: battery technologies, gigafactories and graphite.

The company has a partnership interest in Charge CCCV, a US intellectual property company with patented discoveries in lithium-ion batteries.

In addition, Magnis has ownership interests in two lithium-ion gigafactories in New York and Townsville.  

Magnis also has a Nachu Graphite Project in south-east Tanzania which produces natural flake graphite used in battery anodes.

Most recently, Magnis produced its first full-sized lithium-ion battery at its New York plant. The company highlighted the battery cells were produced with commercial grade components from a fully defined supply chain.

Magnis expects cells to meet limited testing and customer sample needs in the third quarter of 2021.

Earlier this month, Magnis also announced its New York battery plant will use BMLMP technology to produce its batteries.

According to the company, batteries using BMLMP technology have a long life, support fast charging and are safe without the use of nickel or cobalt. In addition, the technology enables a higher voltage compared to regulation lithium-ion batteries.

Magnis share price snapshot

The Magnis share price is up more than 40% since the start of the year. Additonally, it is up almost 4% year to date.

Shares in the lithium-ion battery manufacturer closed yesterday's trading session at 27 cents.  

Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.

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