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MNS - MAGNIS ENERGY TECHNOLOGIES LTD


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So, Alevo it was. Pretty good deal, IMO. Had a look at ALL the equipment being auctioned - massive if they get all that . Wonder what the total price ended up being.

 

PRODUCTION TO BE FAST TRACKED IN NEW YORK WITH

ACQUISITION OF LITHIUM-ION BATTERY PLANT ASSETS

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Production expected to commence within 12-15 months through acquisition of a nearnew

operating Lithium-ion battery plant

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Plant assets including raw material stockpiles to be relocated to existing Huron

Campus in NY from North Carolina

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Magnis to co-fund acquisition in exchange for increased equity in Imperium3 NY

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Capital raising to assist with funding the acquisition raises A$5 Million

 

Magnis Resources Limited (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“MagnisÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ or the ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ) (ASX: MNS) is pleased to announce that Imperium3

New York (IM3NY) placed the winning bid for the acquisition of near new Lithium-ion battery manufacturing

equipment currently located in North Carolina, USA. Magnis has completed a successful A$5.0 million capital

raising to fund its share of the purchase and to increase its stake in IM3NY to a percentage level that will be

disclosed on the closing of the purchase.

 

Lithium-ion Battery Plant Assets

The Lithium-ion battery plant assets consists of high quality new and near new equipment from major United

States and European suppliers. Over US$200M was initially invested by the previous owners into the plant

which was constructed and commenced full scale operations in 2016 and employed over 290 people. The

liquidation sale of the equipment occurred as the previous manufacturers constrained production to bespoke

lithium-ion batteries that had limited commercial appeal, while the facility itself was equipped to

manufacture large volume batteries for the auto industry or power walls for home usage which are now

growing in demand. The IM3NY team thoroughly reviewed the technology and confirmed the procured plant

can easily and cost effectively be calibrated for such large volume manufacturing runs. As a result, the

Imperium3 consortium is of the firm view that this is a low risk, cost-effective and value-accretive

transaction.

 

The plant is currently housed in a facility in North Carolina and includes all operations from slurry making to

coating to cell assembly, formation and testing and even includes module assembly and packing. The equipment will now be disconnected and packed for transport to Huron Campus in New York where it will be reassembled and re-engineered for battery production at a nominal 1GWh scale.

Plant re-engineering will be directed at incorporating Imperium3ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s leading materials and IP processing

technologies as well as introducing additional cylindrical battery production beyond that existing for

prismatic.

 

As previously announced on 22 September 2017, Stage 1 development for 3GWh of production at Huron

Campus had an original CAPEX cost of US$130m. This current equipment acquisition now allows IM3NY to

produce over 1GWh at a significantly reduced CAPEX cost of US$5M plus removal, re-engineering and

reassembly.

 

Details of the Acquisition

The purchase price of the plant equipment, raw materials and machinery is US$5 Million with a US$1 Million

deposit accepted and close of purchase scheduled for completion in late February. The purchase was made

through the Imperium3 NY consortium, in which Magnis and fellow partner C4V will equally co-invest to

enable the purchase of the plant. This investment will result in an increased stake for Magnis in the

Imperium3 NY consortium. Figures 1-3 are examples of the plant machinery acquired.

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For the Purple hound dogs - re this post I made back in January - have you sniffed out this NASDAQ company ?

 

Travis Peluso's presentation at the recent "2017 China-Australia Theme Investment Forum". Anyone come across this name mentioned - New Energy Metallurgical Materials Corporation?

 

Travis Peluso, director of investor relations at Magix Resources (ASX: MNS), a representative of New Energy Metallurgical Materials Corporation (NASDAQ: ASX: MNS), on the exponential type of graphite mine and the lithium battery industry Growth prospects speak.
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Little wonder Alevo went broke - unlike Tesla who are largely funded by government grants/subsidies at both Nevada and Buffalo , they shunned government grants - extracts of articles I posted on HC back in 2014 below.

 

I would imagine apart from the incentives announced from NY Govt, MNS also has received good Lease terms for the old IBM building. The cost of the equipment is another astute deal - IMHO.

 

Alevo has shunned government grants and venture capital investment, raising its estimated startup investment of more than $1 billion through private investments and equity funds

 

They spent $100 million on IT

 

Alevo has invested about $100 million into the IT side of its business,

 

They spent $69 million to buy the PM site

 

The company has already spent $69 million to buy the 2,100-acre site on U.S. Highway 29

 

The equipment reportedly iwas worth $200 million

 

Spend on other fitout??? Here's a slide show of the site when Alevo was launched, showing bare bones structure

https://www.bizjournals.com/charlotte/blog/...html#g/111911/9

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Well done Amorga, great find for today's announcement.

 

Few points:

- Assuming they don't realise an accounting gain on purchase of assets, if the buy turns out to be a dud, the write down would currently stand at ~2% of the company's EV (non-inclusive of extra costs associated with moving/re-engineering). Feasibility study or not, risk/reward for the assets if fairly asymmetric - i have no issues with the rationale underpinning the purchase decision.

- "Sophisticated investors are walking": Term sheet specified the terms of the acquisition to an extent to reach an informed decision to commit funds. Once committed, funds are irrevocable.

Allotment date at the earliest was the 13th (prior to the delay) so the shares are not available to trade before that date. Some hedging may have occurred, however given that lack of an institutional register I'd like to know where a supposed 12.5m share borrow could be executed. Seems to be a bit of misunderstanding elsewhere how the process works.

- Highly likely a significant proportion of the estimated $130m required funding was subject to initial outlay of the production floor and facility. I would be surprised if GWh scalability came at a fixed CAPEX of $43.3m per Gwh.

- Hopefully we can soon find our more about the "Acceleration of strategic partnering with major corporations in Lithium-Ion Battery Manufacturing"

 

Enjoy

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