Investors in Magnis Energy Technologies Ltd (ASX: MNS) will be wondering why the company’s share price remains frozen.
Shares in the lithium-ion battery producer have been in a trading halt since Tuesday.
Earlier today, Magnis provided an update on the status of its securities.
Let’s take a look at what the company had to say.
Magnis Energy share price enters voluntary suspension
In a market announcement released earlier today, Magnis provided an update on the status of the company’s shares.
According to the update, Magnis has requested a voluntary suspension be granted for securities in the company.
The announcement cited that a voluntary suspension has been requested as a result of Magnis not being able to finalise the outcome of its proposed capital raise.
Magnis also provided shareholders on the length of its voluntary suspension.
Shares in the company will remain suspended until Friday, 30 July 2021 or when the company makes an announcement regarding its proposed capital raise.
Recap of Magnis Energy trading halt
As noted previously, shares in Magnis were placed in a trading halt earlier this week.
The company’s securities were slated to recommence trading today.
Magnis did not provide further information on how much the company was looking to raise or where funds would be directed.
More on Magnis Energy
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.
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.
If the proposed capital raise goes ahead, it will be the second time this year that Magnis has raised equity.
Earlier this year, the company raised $34 million via a share placement. Funds from the equity raise were used to fast-track the development of the company’s New York plant.
Shares in the lithium-ion battery manufacturer closed at 27 cents before entering a trading halt on Tuesday.
Overall, the Magnis share price has soared more than 40% since the start of the year.