The Magnis (ASX:MNS) share price has climbed 5% this week. What’s been happening?

Shares in the battery manufacturer are fluctuating. Here are the details.

| More on:
A male executive worker wearing glasses and a blue collared shirt looks at his laptop screen with a concerned look on his face and his hand to his forehead as he watches the Bank of Queensland share price fall

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Magnis share price has increased by 5% in a week, although it finished in the red today
  • The chairman of the battery producer is reported to be under investigation by ASIC
  • Magnis shares have increased by 65% in the last 12 months

The Magnis Energy Technologies Ltd (ASX: MNS) share price has shot up this week.

The price movement comes as the financial activity of the company’s chairman continues to be investigated by the Australian Securities and Investments Commission (ASIC).

At the market close, the Magnis share price had dropped by 5.49% to 43 cents. However, it is still up 4.87% from last Friday’s closing price.

So, what’s going on with the battery manufacturer?

Magnis chairman under investigation

As reported by The Australian on Tuesday, ASIC has requested documents pertaining to the trading activity of Magnis chairman Frank Poullas.

According to The Australian, letters sent to Magnis by senior ASIC officials in September, seen by the publication, “show the corporate regulator is investigating suspected contraventions of Corporations Act provisions relating to market manipulation and the false trading of shares”.

Information tying the company with “Dubai-based financiers” has also been requested.

Further, The Australian said:

The regulator has separately warned investors who appear to be using Telegram and other messaging platforms to manipulate the Magnis share price that they face prosecution.

This comes after the company last month announced the Imperium3 lithium-ion battery plant in New York — of which Magnis is the major shareholder — was now 57% complete.

The long-delated project had been expected to start production in 2019.

Chairman’s financial activity in question

The financial activity of the chairman is also under question after a number of payments from Magnis were made to Strong Solutions — a company linked to Poullas.

The Australian said an internal report, handed to Poullas in early 2020, showed Strong Solutions was billing Magnis $4,500 a month.

The report noted Poullas was charging Magnis his consulting fee with “no independent oversight of this fee or oversight of work undertaken”.

Magnis responds to media coverage

In mid-November, Magnis entered a trading halt before responding to an article in The Australian that claimed Poullas was under investigation by ASIC.

In its response, the company said the article had “a number of unsubstantiated statements regarding the Company”.

The Magnis share price fell by more than 19% on the day of the response. Since then, two board members have also jumped ship from the company.

Magnis share price snapshot

In the last 12 months, the Magnis share price has increased by 65%. Within that time, shares dropped as low as 26 cents and shot as high as 76 cents. Its shares are down 25% this year to date.

The company has a market capitalisation of $439.42 million.

Motley Fool contributor Alice de Bruin 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 Materials Shares

Materials Shares

Will the Liontown share price bounce back in July?

Will July be a better month for this lithium share?

Read more »

worker with head down at oil drilling site
Materials Shares

These ASX 200 mining shares are digging a deeper hole on Friday

BHP, Rio Tinto, and Fortescue are dragging on their sector today.

Read more »

Materials Shares

Why did the Pilbara Minerals share price tumble 22% in June?

A plethora of good news wasn't enough to save this lithium stock from the June sell-off event.

Read more »

Road sign for 'Wall St' with US flags in background
Materials Shares

Here’s how this ASX lithium stock performed on its US debut

Ioneer joined the Nasdaq last night. Here's how it performed...

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Materials Shares

AVZ share price remains suspended, but a return is in sight

This lithium share won't be returning to trade on Friday...

Read more »

a geologist or mine worker looks closely at a rock formation in a darkened cave with water on the ground, wearing a full protective suit and hard hat.
Materials Shares

Own Lynas shares? Here’s the latest challenge faced by the rare earths miner

Why are social media bots going after Lynas?

Read more »

Miner standing in a mine site with his arms crossed.
Materials Shares

Guess which 2 ASX mining shares are soaring more than 15% on new discoveries today?

What's driving up the share price of these explorers today?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Materials Shares

CSR share price lights up amid mega $100 million buyback

The buyback trail continues in 2022 with CSR's latest announcement.

Read more »