My inerpretation as follows. Not financial advice, solely...

My inerpretation as follows. Not financial advice, solely interpretation of events as they are transpiring.


Magnis' role with iM3NY has in the past been effectively VC ownership stake with no significant insight into the functional running and operations of the business. As iM3NY has developed, Magnis has continued to finance the growth and development of the company (whether this be due to incompatible/unviable opportunities for other parties to be involved or through a protection of ownership stake, doesn't really matter).

Since delays in factory production, commercialisation and certification, Magnis has identified that their investments have been poorly managed and as a result have sought to get greater oversight of the business and ensure clearer communications and understandings (hence the appointment of Hoshi as Magnis' MD of US operations).

As greater oversight has been achieved, further discoveries have been made leading to the eventual default on the Credit Facility. With Magnis' 73% ownership in the asset, it is now their opportunity to significantly reevaluate their exposure and role within the company going forward.


Outcome
I guess the surprising thing for me is rather than Magnis stepping back or looking at reducing ownership stakes, etc. they seem to be doubling down on the investment. Increasing Board representation and making changes to the Management structure including the removal of Chaitanya Sharma as CEO.

Now...interim CEO Wade Guindy is not new to the company and has been on the iM3NY Technical Advisory Committee for a reasonably short period. For those that recall, he was present in the ********* interview with Hoshi a few months ago where they discussed the certifcation process and status. This itself was a display of Magnis wanting to show its direct increased communication and collaboration with iM3NY and Hoshi's US presence on Magnis' behalf.


As far as the lender is concerned, I do not believe it is in their best interest to take control over the assets/IP per the Lien associated with the loan facility. The Loan facility is charging a very high interest rate which, if terms of the agreement can be extended, is likely to achieve greater financial benefit to the financier than liquidating assets. Alternatively, allowing for external refinance will at least allow them to remove the risk from their portfolio's (extention of the terms will also allow time for this to occur).

The biggest concern regarding the operation of iM3NY is of course it's ability to sell their product and secure offtakes. The fact that Magnis has taken additional control of iM3NY shows they continue to believe in the product, industry and opportunities that are present. In saying this, the future operations of iM3NY look dubious at best and it's difficult to determine what the operational viability of the company is without that clear oversight and communication across business entities. How this information is expected to flow to shareholders does not look entirely promising and it seems like for the foreseeable future this is just going to be a speculative limbo for investors.


As said at the beginning, above is purely a speculative interpretation of events and not based on any direct knowledge of the operations, decision making or intentions of the companies discussed.