Bizarre responses
It is a shame that the ASX waited until Magnis Energy was essentially out of money. Its latest financial disclosure shows Magnis had $532,000 in available funding, or less than a month of cash available. How does it intend to raise further cash? It is in “final stage discussions regarding additional capital from the debt and equity markets”. Good luck.
The ASX and its compliance function have been well aware of Magnis Energy and its propensity to inflate its achievements. Before the company stopped trading in December, the market operator had issued nine letters in five years questioning Magnis Energy’s forecasts and disclosures. It had declined to take any action.
In one of the more bizarre responses, Magnis Energy told the ASX – in response to queries in late 2021 – that one of its biggest customers was “involved in the oil and gas, renewable energy and technology sectors with operations in Asia, Africa and Europe”. Sukh Energy, registered in India and the United Kingdom, would apparently deliver up to 9 per cent of the battery factory’s revenues, Magnis Energy told the ASX.
Actually, the company said it would be making annual revenues of $530.4 million from the New York factory this year, a figure that would grow to $1.8 billion in 2027. Beyond belief, of course, except perhaps to the ASX compliance team. For the record,The Australian Financial Reviewreported in October that Sukh had once again disclosed that it had almost no revenues of its own in the past financial year.
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