Magnis Energy chair Frank Poullas re-elected despite share price probe

The chairman of Magnis Energy has been returned at an investor vote – despite confirming the corporate regulator has requested documents relating to irregular share trading.

Magnis Energy chairman Frank Poullas said he had no involvement in possible artificial inflation of the Magnis share price – a practice known as ‘pump and dump’ – which is the subject of the ASIC inquiries. Picture: Britta Campion

The chairman of ASX-listed next-generation batteries player Magnis Energy has been returned at an investor vote – despite confirming the corporate regulator has requested documents relating to the irregular trading of the company’s shares.

Australian Federal Police raided the home of Frank Poullas, the executive chairman of Magnis, in September as part of an Australian Securities and Investments Commission investigation.

On Monday, Mr Poullas said he had no involvement in possible artificial inflation of the Magnis share price – a practice known as “pump and dump” – which is the subject of the ASIC inquiries.

“I am aware that ASIC has ­required the production of documents from a number of sources relating to some share trades which have not been identified except by reference to a range of dates in the first half of 2020,” Mr Poullas told investors.

The regulator’s investigation, according to sources briefed on the nature of the inquiries, is ­believed to be focused on posts about Magnis on messaging platform Telegram and on stockmarket discussion board HotCopper.

Magnis, The Australian reported last week, was not the subject of the investigation. ASIC, however, had created at least 174 documents in relation to its queries about the “pump and dump” activity on the Telegram groups.

Richard Petty, who joined the Magnis board in March and who chaired the company’s audit and risk committee, subsequently resigned. He had originally been listed for re-election at the AGM.

“When we are experiencing times of change and adversity, and what we’ve experienced in the media, it’s not uncommon to have a turnover of staff,” Mr Poullas told the meeting when asked about the recent resignations.

Along with Dr Petty, Magnis has had a number of other departures from its board, including ex-Macquarie executive Warwick Smith and former NSW deputy premier Troy Grant.

Another former Macquarie figure, Bill Moss, has removed his nominee directors from a Magnis subsidiary working on a battery development in Townsville.

Magnis owns a 63 per cent stake in New York-based batteries manufacturer Imperium3, as well as a smaller holding in a company that owns some of the next-generation patents Charge CCCV. The technology would allow electric vehicles to be ­recharged in just minutes.

Magnis shares rose 15 per cent on Monday, up 6.5c to close at 50c. The company’s shares had traded as high as 73c this month.

Mr Poullas told investors that no director was involved in the Telegram group that was discussing Magnis shares.

ASIC officials entered at least one group on Telegram in late October to warn its members about attempting to artificially increase the Magnis share price.

“We’re monitoring this channel, and we may be investigating you. Remember – you run the risk of a criminal record, including fines and prison time by being involved in pump-and-dump campaigns,” the regulator warned in one post.

“First and foremost absolutely not, there is no director or anyone including myself involved in that group,” Mr Poullas told investors on Monday.

“From reading media reports it’s illegal and we have no involvement whatsoever.”

Shares in Magnis rose from 8c to 22c over the period of a week in early January 2020, with the company disclosing a new funding deal and issuing 8.5 million new shares two weeks later.

That increase was queried by the ASX. Magnis said it was “not aware of any information concerning it that has not been announced to the market”.

Separately, Dr Petty declined to comment on the circumstances of his departure and said it was “not appropriate for me to talk now”. “I need some time to process events,” he said.

Magnis told the meeting on Monday that the New York battery plant was now 40 per cent complete, with future plans for a significant expansion. The plant was first announced by then New York governor Andrew Cuomo in 2017 and was scheduled to open by the end of 2019.

Mona Dajani was also re-elected to the Magnis board.

In September, The Australian asked Magnis whether Ms Dajani – as noted on the company’s material – was “an adviser to the Biden administration”.

Since then, that biographical information has been removed from Magnis documents and its online presence. On Monday, she was described in a presentation as a “lawyer”.