MNS ASX: The slow death of Magnis Energy shows plenty wrong with the ASX

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MNS ASX: The slow death of Magnis Energy shows plenty wrong with the ASX
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Over many years, the EV play has shown nothing but contempt for shareholders, most of them small investors. In its inaction, so too has the market operator.

Magnis Energy Technologies has been producing commercial quantities of the most cutting-edge electric vehicle batteries for one year, eight months and two days. At least, that’s what it says on the ASX.

It would have come as some surprise to investors, presumably, when Magnis Energy shares entered a trading halt on December 6 and never exited. Finally, in March, the ASX disclosed a lengthy exchange of letters dating back to January where it repeatedly raised queries about the company’s forecasts and disclosures to the market.It is a shame that the ASX waited until Magnis Energy was essentially out of money.

reported in October that Sukh had once again disclosed that it had almost no revenues of its own in the past financial yearreported in that same year that Magnis Energy had “engaged alleged drug-smuggling kingpin Hakan Arif to act as an agent for the company in Turkey”, according to former senior employees.

Of course, investors should be responsible for their own bad calls. The ASX is not there to prevent a poorly performing investment upsetting shareholder returns. But the bare minimum should surely be keeping the flow of information accurate – and not just when there’s little road left to go. The ASX has a responsibility to refer suspicions to ASIC. In this case, we will likely never know whether this actually occurred.

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