Why Magnis Energy [ASX:MNS] Is Up Almost 7% Today

By ,

The share price of ASX-listed Magnis Energy Technologies [ASX:MNS] is up today after its subsidiary, Imperium3 New York Inc (iM3NY), completed a US$100 million intellectual property-based financing.

Magnis is a major shareholder in iM3NY, along with its joint venture and technology partner Charge CCCV (C4V). Magnis also has 100% interest in the Nachu Graphite Project in Tanzania and is planning to build two battery plants, one in New York and another in Australia.

US$100 million to refinance debt and fast-track growth

iM3NY completed the US$100 million IP-based financing in partnership with Atlas Credit Partners and Aon. This is a three-year loan facility which gives the company additional capital cost reductions as it hits different milestones.

With the new loan, the company is planning to refinance their US$50 million four-year Riverstone senior secured loan the company obtained last year in April.

The company said it’s made ‘significant progress in the construction of the initial phase of its first Gigawatt scale factory’ in the last year and is planning to use part of that money to speed up its growth plans.

iM3NY Chairman and President of C4V Dr Shailesh Upreti said:

‘While intellectual property is the lifeblood of any technology company driving majority of the value, its importance in a highly crowded market like Lithium-ion batteries is even more consequential. We continue to remain at the forefront of innovation by pioneering the next generation chemistry, industry leading advanced cell designs and processes as well as the associated supply chain.’

Investors liked the announcement

The announcement boosted Magnis’ share price, which at time of writing is trading at 0.49, up 6.5% from yesterday’s close.

Regards,
Selva Freigedo

PS: It’s certainly a good time to get into lithium with prices at record highs and Europe looking to accelerate its energy transition.

If you’re interested in investing in lithium, check out our new report ‘Three Overlooked ASX Lithium Stocks that Could Soon Rocket Higher on the Fast-Growing EV Revolution’.

About Selva Freigedo

Selva Freigedo is an analyst at Money Morning. She has a background in financial economics, but what makes Selva´s experiences different to many are the places she has lived and worked. Born in Argentina, she has also lived in Brazil, the US, Spain, and now Australia. She has seen up…

Sayona Mining Share Price: $190 Million Raised to Restart NAL Operation

Lithium producer Sayona Mining [ASX:SYA] has raised $190 million via an institutional placement to restart its North American Lithium (NAL) operation in Quebec.

Telus Revokes Bid for Appen: Appen [ASX:APX] Shares Plummet 20%

Shares for Appen [ASX:APX] have fallen over 20% today, as Telus revokes its takeover offer.

NAB [ASX:NAB] Enters BNPL Market by Launching Afterpay and Zip Rival

Big Four bank National Australia Bank [ASX:NAB] announced it will launch its own BNPL product, entering a crowded market.

Appen Shares Spike on $1.2 Billion Bid

Artificial intelligence services business Appen [ASX:APX] saw its shares spike 30% before entering a trading halt on news of a takeover bid from TELUS International.

Nanosonics Share Price Flat on Business Update

Healthcare stock Nanosonics [ASX:NAN] announced a transition to a direct sales model in North America.

TechnologyOne [ASX:TNE] Shares Flat Despite Record H1 FY22 Profit

Enterprise SaaS stock TechnologyOne [ASX:TNE] has released its half-year results, notching its 13th year of ‘record first half profit’.