Magnis Energy (ASX:MNS) looks to bank A$34 million for New York battery plant

• Magnis Energy (MNS) has tapped institutional, professional and sophisticated investors for $34 million in an oversubscribed placement
• Proceeds are set to go towards fast-tracking development at the iM3NY facility lithium-ion battery plant in New York
• As it stands, Magnis has offered 121,428,572 ordinary shares at 28 cents apiece to investors with free attaching unlisted options valid for two years 50 cents each
• Debt and equity arrangements for the facility are set to be finalised before the end of Q1 this year
• Magnis Energy shares are off 4.55 per cent following the announcement, trading at 31.5 cents each

Magnis Energy (MNS) has tapped institutional, professional and sophisticated investors for $34 million in an oversubscribed placement.

Proceeds from the placement, which is set to see Magnis cough up 121,428,572 ordinary shares at 28 cents apiece, will be used to fast-track development at its New York lithium-ion battery plant.

Each share will also have a free attaching unlisted option with a strike price of 50 cents and a two-year expiry date.

Magnis has a 50.86 per cent direct and indirect stake in the iM3NY facility, which is touted to become one of the largest lithium-ion cell manufacturers in the United States.

Overseen by Evolution Capital Advisors, the placement is set to be split into two tranches due to accommodate for the current capacity, the first for 108,309,700 fully paid shares and the second for the remaining 13,118,872 and unlisted options.

The second tranche, however, will be conditional to shareholder approval.

In conjunction with the placement, iM3NY has lined up a series of debt and equity opportunities to secure further financing for the plant, with concrete arrangements anticipated before the first quarter of 2021 draws to a close.

“We have been working hard to achieve this funding for our New York project and to become a significant global producer of lithium-ion batteries,” Magnis Chairman Frank Poullas commented.

“Today’s announcement will allow us to fulfil our goal of bringing the iM3NY plant into production in 2021 and cementing our place in this exciting emerging industry,” he concluded.

Magnis Energy shares are off 4.55 per cent following the announcement, trading at 31.5 cents each at 1:00 pm AEDT.