This was the announcement released circa a month ago.
On December 18[1] Magnis notified the market that it would potentially deconsolidate its subsidiaries iM3NY LLC (“LLC”) and Imperium 3 New York Inc (“Inc”). Following the
resignation of its appointed directors to the board of managers, as advised on 27 December 2023[2], and after discussions last week with the Company’s auditors, Hall Chadwick,
Magnis will no longer treat LLC and Inc as subsidiaries in its financial reports (meaning that the Company’s accounts will no longer report consolidated figures in respect of those entities), which, subject to finalisation of the half-year
financial report, is anticipated to have a positive impact on Magnis’ reported financial position.
In October2023[3] the Company advised the market that there were 3 agreements (Renewed Agreements) for the purchase of cells from the factory which had been renewed for periods up to 5 years, none of the other extant agreements has been renewed. As noted in the announcement, the
Renewed Agreements were with Sukh Energy, Martac and EGYAI and the combined value of the Renewed Agreements over their duration was circa USD 147 million. The Company has recently been advised by the newly appointed directors of Inc that the
Renewed Agreements have since
lapsed, because Inc missed the amended scheduled supply start dates, therefore not satisfying the conditions precedent under the contracts. To the best of the Company’s knowledge, Inc no longer has any operative off-take agreements. These lapsed contracts are not considered material to the Company as a consequence of Inc no longer being its subsidiary.
https://hotcopper.com.au/posts/72004447/singleSo they said Directors from MNS had "resigned" thus will deconsolidate from its financial report. Then further below, they said the offtake agreements had lapsed. How is they can negotiate on behalf of IM3NY, when they are NO LONGER Directors of IM3NY? As of the date of resignation, MNS was ONLY a significant shareholder of IM3NY with NO CONTROL over the direction of IM3NY. How could they, as shareholder, negotiate and enter into contracts on behalf of IM3NY, when they are NO LONGER Directors of IM3NY?
Further, why would some institutions fork out USD $100M to re-finance an asset which currently does not work to specifications? And currently produces ZERO batteries and has NO OFFTAKE agreements in place?
(20min delay)