The Magnis Energy Technologies Ltd (ASX: MNS) share price stormed more than 16% higher today after the company provided an update on its funding status.
However, the shares have partially retreated this afternoon. At the time of writing they are up 5.56% to 28.5 cents.
Let’s take a look at what the company announced and why investors are flocking to buy shares in Magnis.
What did Magnis announce?
Earlier today Magnis informed shareholders the company has secured a total of $20 million in funding.
The lithium-ion battery start-up was able to raise funds from two United States-based institutions, Lind Partners and SBC Global Investment Fund.
Magnis said US$13 million (approximately $17.6 million) has been invested into the company’s subsidiary iM3NY.
According to the company, the immediate cash injection will assist iM3NY with further expansion plans and its potential listing in the US on either the Nasdaq or NYSE.
A listing is expected be completed in late 2021. Magnis will provide shareholders with details in due course.
In addition, the company also noted remaining funds will be used for general working capital. These funds will be directed to advancing early works at its Nachu graphite project in Tanzania and its Townsville battery plant.
After announcing its funding success, securities in Magnis were reinstated onto the ASX.
Magnis trading halt
At the request of the company, Magnis shares were placed in a trading halt last Tuesday pending a capital raise.
After the company was unable to finalise the outcome of its proposed capital raise, the Magnis share price entered into a voluntary suspension.
As noted earlier, Magnis shares were reinstated following today’s funding announcement.
Snapshot of the Magnis share price
Magnis is an Australia-based producer of lithium-ion battery cells. 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. It also owns the Nachu graphite project in south-east Tanzania.
Following today’s announcement, the Magnis share price bolted more than 16%, hitting an intra-day high of 31.5 cents. It is up 50% year to date, and 42% in the last 12 months.