Magnis says it will co-operate with ASIC’s latest investigation into market conduct

Shares in Magnis have slid after the listed battery and graphite player confirmed it had been asked to hand over documents as part of an ASIC investigation.

Magnis Energy Technologies chair Frank Poullas.

ASX-listed battery and graphite play Magnis Energy Technologies has confirmed it is the subject of an investigation by the corporate regulator and told shareholders it “takes its obligations very seriously and will co-operate fully”.

In a market update on Thursday Magnis confirmed it had received from the Australian Securities and Investments Commission a notice to produce documents.

“Magnis intends to make further (non-sensitive) information in relation to this matter available on its website in due course,” a statement signed off by the board said.

“Magnis will also keep the market informed of material developments in accordance with its continuous disclosure obligations.”

ASIC revealed in a late submission to parliament that it had opened a new investigation examining “suspected false or misleading statements and breaches of continuous disclosure obligations by Magnis”.

ASIC said the new examination of Magnis, which began in July 2023, came after it closed an initial investigation into the firm’s chair, Frank Poullas.

The regulator told parliament it “was potentially arguable” there had been a failure to notify the market of a change in the relevant interest in the company, but ASIC dropped its investigation into Magnis after finding “no direct evidence of an intention to manipulate the price of Magnis’ shares”.

ASIC said “the trading patterns did not support a circumstantial case of manipulative intent”, noting it had “evidentiary challenges” in proving the “person of interest was responsible for entering the relevant orders into the market”.

In a tweet on social media platform X on Tuesday, Mr Poullas said shareholders should “understand ASIC have investigation (sic) and found – All Allegations of impropriety are FALSE & without any Merit or Evidence” and further claimed a “witch-hunt”.

Mr Poullas was raided by Australian Federal Police officers as part of ASIC’s investigation into Magnis and documents were seized from his home.

The Australian has previously confirmed Mr Poullas told AL Capital chief executive Wayne Mo to buy shares in Magnis “at considerably lower ­prices” to a proposed share placement that was mooted.

In a separate statement to The Australian sent on behalf of Magnis board members, the company said it was disappointed it was mentioned before a Senate economics committee inquiry on Wednesday.

This inquiry was told ASIC failed to properly investigate allegations raised against Magnis and Mr Poullas by whistleblowers.

Magnis said the matters raised before parliament “pertain to historical claims”.

“Magnis fully co-operated in this ASIC investigation, which was an exhaustive process including the regulator executing a search warrant, conducting section-19 examinations and reviewing more than 8000 documents plus 75,000 email and telephone records,” Magnis said.

“Magnis confirms that it is in the process of responding to a new review by ASIC. Magnis has always co-operated fully and collaboratively with the regulator and will continue to do so.”

Magnis said it had a whistleblower policy “to ensure a safe and secure means of disclosing a wrongdoing or reportable matter”.

ASIC has been contacted for comment.

Magnis shares closed 3.4 per cent lower on Thursday at 8.4c

Originally published as Magnis says it will co-operate with ASIC’s latest investigation into market conduct