Magnis (ASX:MNS) share price falls 40% this week amid ASIC and board woes

Here’s what might have weighed on the Magnis share price this week.

| More on:
a person in a business suit wipes his forehead with his handkerchief while a red, falling arrow zigzags downwards behind him

Image source: Getty Images

The Magnis Energy Technologies Ltd (ASX: MNS) share price is slipping again today amid the resignation of one of the company’s directors.

The resignation comes days after a disputed report was published stating that the company’s chair is being investigated by the Australian Securities and Investments Commission (ASIC).

At the time of writing, the Magnis Energy share price is 43.5 cents, 14.7% lower than its previous close. It’s also 40% lower than it was at the end of last week.

Let’s take a look at what might be weighing on the lithium-ion battery manufacturer’s stock this week.

Why’s the Magnis share price falling this week?

The Magnis share price was put into the freezer on Wednesday after a media outlet suggested ASIC was looking into the company’s chair, Frank Poullas.

The article also stated that the watchdog might turn its attention to the company itself in the future.

Magnis’ shares were defrosted later that day when the company released a response to the report. In doing so, the company denied ASIC might investigate it.

Despite the company’s trading halt and refutation, the Magnis share price fell 19% on Wednesday.

The latest news from Magnis was released today. However, as the release is marked as non-price sensitive, it is unlikely to be weighing heavily on the Magnis share price.

It details the immediate resignation of Dr Richard Petty from the company’s board.

It also announced the appointment of former New South Wales Police Investigations Coordinator Michael Gerondis as head of governance, compliance, and risk at Magnis.

In his time with the NSW Police, Gerondis was charged with assessing fraud investigations.

For the last 15 years, Gerondis has worked on projects for private firms and government departments. Such departments have included ASIC and the Australian Taxation Office.

Magnis Energy also released a non-price sensitive announcement updating the market on its New York Lithium-ion Battery Plant today.

The plant is now 40% completed, and all needed permits have been received.

Should you invest $1,000 in Magnis Energy right now?

Before you consider Magnis Energy, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Magnis Energy wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Brooke Cooper 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.

More on Energy Shares

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the 30% increase in Pure Hydrogen's share price today
Energy Shares

Why the Pure Hydrogen (ASX:PH2) share price is rocketing 30% today

Key points Pure Hydrogen stock is soaring on the ASX today The company has entered a joint venture in India …

Read more »

An oil miner with his thumbs up.
Energy Shares

Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?

Key points AGL was one of the worst performing ASX 200 shares of 2021 But 2022 has given this company …

Read more »

a smiling woman holds up two fingers and winks.
Share Gainers

Top 2 ASX 200 shares of the year so far revealed

S&P/ASX 200 Index (ASX: XJO) shares as a whole haven’t gotten off to the strongest of starts in 2022. After …

Read more »

A man in suit and tie is smug about his suitcase bursting with cash.
Energy Shares

Is Santos (ASX:STO) about to enjoy a $3 billion payday?

Owners of Santos Ltd (ASX: STO) shares might want to keep an eye on the company’s Papua New Guinea assets …

Read more »

Businessman walks through exit door signalling resignation
Energy Shares

Woodside (ASX:WPL) share price slightly retraces following Myanmar withdrawal

Key Points Woodside shares remain in positive territory amid management decision to end investment in Myanmar Political unrest along with …

Read more »

oil can falling over and spilling coins signifying fall in oil share prices
Energy Shares

Why are ASX 200 energy shares tumbling on Tuesday?

Key points The ASX 200 energy shares make up the worst performing sector on Tuesday They’re likely being weighed down …

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Earnings Results

Beach Energy (ASX:BPT) share price tumbles 7% on production slide

Key points The Beach Energy share price is under pressure Production levels fell quarter on quarter Higher oil prices helped …

Read more »

Two miners standing together with a smile on their faces.
Resources Shares

Two top ASX 200 mining shares to watch in 2022: Saxo Markets

Key points These 2 ASX 200 miners have trounced the index in 2022 A strong outlook for iron ore could …

Read more »