Magnis Energy Technologies gets a US trading downgrade and a non-executive director has resigned

ASX-listed battery player Magnis Energy Technologies has lost a non-executive director and will shift to a mid-tier market for trading in the US.

Magnis Energy Technologies' iM3NY lithium-ion battery plant in New York.

Battery and graphite player Magnis Energy Technologies will be downgraded to a lower-tiered market for its US trading, at the same time as one of its director has quit.

Magnis announced the resignation of non-executive director Mona Dajani “due to other work commitments” as well as the US trading change in a short update to the ASX on Tuesday.

Magnis, whose shares are still suspended on the ASX, said it had been informed by OTC Markets Group that the company would be transitioned to the OTCQB Venture Market.

Magnis currently trades on the OTCQX Best Market – the highest tier of the three over-the-counter markets operated by OTC for trading in 12,000 US and international securities.

The Venture Market is the middle tier of its markets; the Pink Open Market is the lowest tier.

Magnis began trading on the OTCQX Best Market in November 2021, noting at the time that it was receiving significant interest from US investors given its position as the largest shareholder in one of the largest lithium-ion plants in North America.

The shift to the OTCQB Venture Market is subject to the completion of formalities, Magnis said. No reason was given for the change.

Magnis announced that Ms Dajani had resigned from its board due to other work commitments, effective December 31.

She was re-elected to the board at the company’s November annual general meeting.

Ms Dajani, a dual qualified lawyer in the US and England as well as a licensed professional engineer, joined the Magnis board as a non-executive director in March 2021.

The statement announcing her appointment described Ms Dajani as a “global expert in renewable energy, lawyer and adviser to the Biden administration and the US Department of Energy”.

Magnis chairman Frank Poullas thanked Ms Dajani for her three years as a director.

“The Magnis board would like to thank Mona for her significant contribution over the past three years and we wish her well in her future endeavours,” Mr Poullas said.

A final director’s interest notice filed with the ASX noted Ms Dajani did not own any Magnis securities, but indirectly had an interest in two million unlisted options via the trustee of the Magnis share option trust.

Australian-listed shares in Magnis, a former market darling, have been in and out of trading in recent months.

The stock last traded at 4c on December 5, before the ASX announced on December 8 that Magnis would be suspended from trading until it complied with the listing rules, including its continuous disclosure and periodic reporting obligations.

Magnis securities last traded at US2.5c on the OTCQX market on December 29.

The Australian last month reported that Magnis claimed it was solvent but said it risked having its flagship battery factory sold or shut down by lenders, and that it had earlier lost control of its battery “gigafactory” Imperium3 New York (iM3NY) after lenders moved in on the company.

Magnis issued a further update on iM3NY and its court dispute with joint venture and technology partner Charge CCCV (C4V) on December 27. Magnis and C4V are the major shareholders in the company’s US-based subsidiary, iM3NY, which operates the lithium-ion battery manufacturing project.

The company said a US court had cancelled a further hearing scheduled for January 2 and accepted the resignation of three Magnis-appointed directors including Mr Poullas from the iM3NY board.

Magnis said the decision was made “to afford Magnis the ability to focus its efforts on arranging the potential retirement and replacement of the credit facility (and therefore to seek to preserve the value of its investment in the battery facility) rather than on costly and time-consuming litigation”.

Magnis also said it continued to work with the ASX in an attempt to satisfy the market operator of its ability to comply with the listing rules in relation to material developments.

Originally published as Magnis Energy Technologies gets a US trading downgrade and a non-executive director has resigned