Join our daily newsletter At The Bell to receive exclusive market insights
- Lithium-ion battery specialist Magnis Energy Technologies (MNS) is getting ready to tap investors for some extra funds before the weekend
- The company’s shares are in a trading halt until Friday as it irons out the details of the raise
- This is the second capital raise taken on by Magnis in the past three months after the company tapped professional investors and institutions for $1.5 million back in June
- At the end of the June quarter, Magnis had $5.4 million in total funding available, of which less than $500,000 was in the form of cash in the bank
- Shares in Magnis last traded for 19 cents each yesterday afternoon
Lithium-ion battery specialist Magnis Energy Technologies (MNS) is getting ready to tap investors for some extra funds before the weekend.
The company has frozen its shares until Friday, September 4, as it irons out the details of the upcoming raise.
It’s not yet known exactly how much Magnis plans to funnel from investors or at what price new shares will be issued.
This will be the second placement taken on by Magnis in the past three months. In June, the company raised $1.5 million in a share placement to professional and institutional investors under which new shares were priced at 7.5 cents each.
Of course, since then, Magnis shares have soared. Over most of August, shares in MNS were worth upwards of 20 cents each on the market. As such, even at a discount, the company’s upcoming raise will likely provide more bang for company buck than the June placement.
Taking a look at Magnis’ most recent financial figures, the company had just under $5.4 million in total funding available at the end of June. However, the bulk of this — $4.9 million, to be exact — was from unused financing facilities. Magnis had just $466,000 cash in the bank at the end of June.
From an operational standpoint, Magnis went cashflow-negative for the June quarter by just over $1 million. As such, the upcoming raise is likely a welcome boost to cash reserves as the company works to produce next-generation lithium-ion batteries in New York and Australia.
Shares in Magnis last traded for 19 cents each yesterday afternoon. The company has a $126.35 million market cap.
