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.

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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.

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.

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