Attendees – Hoshi Daruwalla, Frank Poullas, Clare Bibby, Giles Gunesekera (missed the introduction of the other 2 members)
Absent – Mona Dajani
RESOLUTIONS (proxy votes)
1A - Voted For 87%
1B - Frank: We needed to use money for consulting and decided that internally, rather than externally to save costs. At the time this was advised to be appropriate. Directors have agreed to pay back if needed. - voted FOR 92%
2A - Voted FOR 89%
2B - Voted FOR 90%
2C - Voted FOR 91%
3A - Voted FOR 91%
3B - Voted AGAINST 87%
3C - Voted AGAINST 86%
3D - Voted AGAINST 93%
3E - Voted FOR 93%
4 - Voted FOR 93%
The above was shared with those present, not including the voting that took place after the resolution by those in attendance.
That concluded the formal part of the meeting, which then followed the presentation by Hoshi (as per the news release). Here are my notes on points he mentioned during the slides:
Slide 1 (page 3)
Fine tuning of the production had to take place to increase productivity and this is ongoing.
300 cells per day is the guarantee for December onwards.
Couple of Letters of Intent out with manufacturers – this was supposed to be later in the factory project, but moved forward due to demand
AAM project – the site is 24km away from the Tesla Nevada site, so looks to have been decided.
Funding – talked about how it is harder to get capital lending now versus 4 years ago.
Nachu has 2 new diligence teams (large international companies) next month visiting
Slide 2 (page 4)
IM3NY production - renegotiating the terms to remove restrictions and better rates (interest).
Talks about the interim CEO Wade Guindy - 30 years of experience and brings more people who have vast experience to join him.
Funding talks with governments (2 in talks) for Nachu - Dec 11th visit from one government *
*different from the new diligence teams visiting next month also (correct me if wrong)
Off-take agreements - has all permits at IM3NY (secured in June), tier 1 companies want to negotiate now
Slide 3 (page 5)
Talks about the news where it has been contested (C4V, didn’t mention name), but we hold 73% and by right have the majority position on the board
Production in IM3NY - talks about scaling up and how we need to get to 1GwH and then onwards to 32 GwH
Over the last slides he talked about how the change in exports from China will be a benefit for Nachu and how quick it will be paid back (2 years repayment).
QUESTIONS (all answered by Hoshi)
What is the expected revenues for next 2 quarters? Next month $1 million, with month by month reporting to be provided to shareholders. No promises to be made on projected milestones, as they want to deliver this time.
Who are the potential buyers? We have firm buyers, some with letter of intent. There is no shortage of buyers or what has been perceived by some. To turn from letter of intent, due dilligence has to be done on a testing cell from production line.
Are Omega Seiki being delivered in 2H 2023 as promised? Hoshi wasn’t completely clear on whether these were the customer they would deliver to in December 23, but missed some of the answer (someone else could add details here if they remember)
What is the testing time and then confirmed to proceed for cells? Some due dilligence takes 3 months, 6 months (some 24 months). IM3NY wants to give priority to the fastest customers on due diligence first, without giving impression that we just care about revenue
how do we ramp up to 10k per day to cover our current cash burn? Actually has to be higher than that to cover cash burn, as we have to use recycling companies as the more we produce, the more waste produced
What are the targets now? Very reluctant to give a projection, so to not be held to it and/or miss them
Is it the current team right to get to 10k per day? The team is fully committed to reaching targets and making MNS profitable
Due to time restrictions, they closed the questions so that people in attendance could have a chance to meet and talk with board members.
I asked Hoshi about the ongoing dialogue with DOE for funind and he mentioned that as part of the KYC, we need to go back on a couple of points. He also mentioned that these were raised in September, but those who were in control at the time had not actioned them as yet...! These are now being addressed with priority with hope to move on the process for the funding application.
In summary, I felt (my own opinion) like there were a lot of things still unanswered. I don’t know if this is because they are being told (legal counsel present) to be tight-lipped or they simply haven’t progressed as much as they had hoped.
The changes in China were pushed across throughout the Q&A and presentation, so I think this will bring good news to Magnis.
For those who asked, I didn’t see Andrew Price in the room when I looked around.
Any questions, feel free to ask.
(20min delay)