ASX puts Magnis on watchlist over concern for pattern of behaviour with market announcements

Magnis Energy Technologies is facing a heightened level of oversight for its market announcements after repeatedly running afoul of the ASX’s listings compliance team.

Magnis Energy Technologies chair Frank Poullas said the company was not dealing with ‘any unusual delays in posting ASX announcements’. Picture: Britta Campion

Magnis Energy Technologies is facing a heightened level of oversight for its market announcements after repeatedly running afoul of the Australian Securities Exchange’s listings compliance team.

Magnis, a battery and graphite play, listed on the ASX, OTCQX, and Frankfurt Stock Exchange, has faced a wild ride on the sharemarket as investors digest repeated market announcements concerning its array of projects and prospects.

Magnis shares are well down from their peak in November 2021 when they hit 73c, closing at 17c on Monday.

Driving the frothy movement has been investor interest in the firm over its New York State gigafactory Imperium3 as well as Nachu, its much touted Tanzanian graphite mine. But repeated run-ins with the ASX’s compliance team, as market-sensitive announcements slipped out to media, and the publication of updates seen within the market operator as unnecessary broadcasts, have seen Magnis placed on a list of heavily scrutinised operators.

In the last month Magnis has put five updates on the ASX, including three market announcements last week.

Among its announcements, Magnis revealed its chief executive of 10 months, David Taylor, had quit.

The ASX is understood to be reviewing each update put up by Magnis over concerns with its market disclosure as well as several previous instances that have resulted in the firm facing query notices from the market operator.

Market sources have indicated Magnis’s pattern of behaviour has raised eyebrows at the ASX as well as among regulators.

In the last six months, Magnis has faced two ASX-query notices over its disclosure of information.

In May, ASX listings compliance adviser Angel He quizzed Magnis over its disclosure of a joint venture agreement with Omega Seiki Mobility.

Magnis announced its joint venture deal with Omega Seiki Mobility on May 17, but Ms He questioned why news of the ­potential deal was first aired on January 29.

Magnis general counsel Duncan Glasgow told Ms He the company had “robust continuous disclosure processes and protocols”.

Magnis received another please explain in February over concerns the firm had failed to disclose that its flagship project in Townsville had been dumped by the council.

Magnis has touted repeated plans to build a gigafactory in Townsville, including signing a deal with former Macquarie CEO Bill Moss’s operation Boston Global Group to push the plan.

But the ASX questioned why Magnis had failed to disclose its project had been dumped in its December quarterly statement.

Magnis has also been forced to issue repeated clarification to media articles concerning the company’s activities after they were aired in market gossip sections.

The ASX may reject a market update or delay an announcement.

However, Magnis chair Frank Poullas rejected any suggestion the firm was dealing with “any unusual delays in posting ASX announcements”.

Originally published as ASX puts Magnis on watchlist over concern for pattern of behaviour with market announcements