Magnis fails to secure accounts sign-off amid audit delays

Magnis Energy Technologies has failed to provide a date for lodging its annual accounts as questions linger over the company’s financial health.

Magnis Energy Technologies chairman Frank Poullas. Picture: James Croucher

Troubled ASX-listed battery and graphite stock Magnis Energy Technologies has failed to provide a date for lodging its annual accounts as questions linger over the company’s financial health, days after The Australian detailed its links to organised crime figures.

In a market update posted late on Monday, Magnis told its investors it would not lodge audited financial statements as required under listing rules.

Magnis told investors its directors were in “discussions regarding additional capital from debt and equity markets” which had delayed the lodging of full-year accounts.

This comes as Magnis prepared to face a $5.5m cash call set to fall due on October 16 after the company entered into a financing deal with private lenders in July. Magnis borrowed $4.6m in a short-term loan at the beginning of the year, with the debt load initially due in March but steadily delayed amid repeated attempts to refinance.

The company also owes shareholders, on an unsecured basis, more than $704,000.

Magnis said delays in closing a liquidity transaction had caused a “consequential impact”, delaying the company’s annual audit by auditors Hall Chadwick.

“The company will submit the financial statements as soon as practicable but, at this stage, cannot provide a specific time frame for their completion,” Magnis told shareholders.

The latest troubles for Magnis come as the company, worth more than $700m at its peak, prepares to hit 300 days suspended from trade.

Shares in Magnis last traded at 4.2c.

Magnis told shareholders in July the company had just $90,000 in the bank as of June 30, with directors not being paid for more than a year.

But Magnis assured the ASX it had the capacity to issue 180 million shares, worth circa $7.5m at the company’s last traded price, noting the company was “in discussions regarding additional capital from the debt and equity markets”.

However, no announcements have been forthcoming.

To issue new shares Magnis must first issue a new prospectus which must be signed off by the Australian Securities and Investments Commission.

ASIC is currently suing Magnis and its chair Frank Poullas, alleging the company repeatedly withheld damaging information from shareholders about the disastrous performance of its battery “gigafactory” in the US.

Mr Poullas did not respond to requests for comment.

Originally published as Magnis fails to secure accounts sign-off amid audit delays