The Magnis (ASX:MNS) share price freeze continues, quarterly update released

Magnis released its quarterly activities report late last week despite its shares being in a trading halt

The Magnis Energy Technologies Ltd (ASX: MNS) share price has been frozen for almost a week.

Despite releasing its quarterly activities report late last week, shares in the lithium-ion battery manufacturer remain in a trading halt. The Magnis share price last traded on Tuesday last week at 27 cents.

Let's look at how Magnis performed last quarter and the status of the company's voluntary suspension.

A dollar sign embedded in ice, indicating a share price freeze or trading halt

Image source: Getty Images

Magnis share price unmoved on quarterly report

Magnis released its quarterly activities report to the market after the close of Friday's trading session.

For the quarter ending 30 June 2021, the company highlighted production at its New York plant.

Magnis was able to produce its first full-sized prismatic cells using commercial grade components last quarter. As a result, the company expects to be on track for customer sampling in the third quarter of 2021.

The company also noted the US$85 million funding package for its New York plant. According to Magnis, the funding has allowed for the acquisition of new equipment to increase the battery plant's annual capacity to 1.8GWh.

Magnis also highlighted the progress made with its technology partner Charge CCCV (C4V).  It has a 9.65% stake in C4V, which specialises in the accelerated charging of lithium-ion batteries.

Suspension and transaction update

In addition to its quarterly report, Magnis also provided an update on its voluntary suspension.

The company noted that securities in Magnis would remain in suspension until the release of its announcement regarding the proposed capital raising transaction.

Magnis noted that the announcement would be published by today. However, the company has yet to release an update.

Shares in the lithium-ion battery producer have been in a trading halt since last Tuesday.

Magnis initially expected its shares to come out of the freeze last Thursday. However, the company chose to extend the exclusion of its securities, requesting a voluntary suspension late last week.

The company cited the inability to finalise the outcome of its proposed capital raise.

Magnis has not provided further information on how much the company is looking to raise or where funds will be directed.

According to the Australian Financial Review's Street Talk column, Magnis is expected to reveal it has secured $20 million via a convertible note issue.

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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