- Magnis Energy (MNS) shares have slipped following media reports its chairman is under investigation by ASIC
- The chairman of Magnis Energy, Frank Poullas, is being investigated by the corporate regulator, according to a report from The Australian
- Magnis, in an announcement to the market, has said the company is not under investigation by ASIC
- Magnis Energy’s share price has fallen 17.9 per cent to 55 cents per share at 3:15 pm AEDT after the company’s worth increased by 81 per cent in the previous month
- According to the article, the Australian Federal Police has assisted ASIC in its inquiries, with the latter having previously discussed MNS with the ASX
Magnis Energy (MNS) shares have slipped following media reports its chairman is under investigation by the Australian Securities and Investments Commission (ASIC).
The chairman of Magnis Energy, Frank Poullas, is being investigated by the corporate regulator, according to a report from The Australian.
According to the article, the Australian Federal Police has assisted ASIC in its inquiries, with the latter having previously discussed MNS with the ASX.
Not only does ASIC have its gaze set upon Mr Poullas, but the article said a source “close” to ASIC has not ruled out expanding the probe to include the company.
Magnis, in an announcement to the market, has said the company is not under investigation by ASIC. The company did not confirm or deny if Mr Poullas is under investigation.
“The media article contains a number of unsubstantiated statements regarding the company,” MNS said in an announcement.
“The media article repeats previously published speculation concerning trading in the company’s shares and inquiries undertaken by ASIC in relation to some trading in those shares, the company is not aware of any material which would indicate that the company is or is likely to be under any form of investigation.”
Magnis Energy’s share price has fallen 17.9 per cent to 55 cents per share at 3:15 pm AEDT after the company’s worth increased by 81 per cent in the previous month
ASIC has already sought to discourage market participants from driving up the Magnis share price, infiltrating a Telegram channel of 400 traders in October and alerting them that they might be breaching the law with a coordinated “pump-and-dump” effort.
The Market Herald is not suggesting Mr Poullas is involved in this activity.
On Monday Mr Poullas received 500,000 ordinary shares, worth nearly $335,000, triggered after the company reached a $500 million market capitalisation milestone.
The ASX is thought to have opted against releasing a Magnis Energy statement to the market last week. Instead, the material was published on the company’s website.
An ASX spokesperson declined to comment, saying only that “we do provide guidance to companies that announcements should be material and not for promotional purposes predominately”.
Magnis Energy was contacted for comment.
Magnis Energy’s share price has fallen 14.2 per cent to 57.5 cents per share at 3:10 pm AEDT.