Magnis Energy Technologies Limited (OTCMKTS:MNSEF) Stock Takes a Hit: Slumps 29%
It must have been a pretty upsetting day for investors in Magnis Energy Technologies Limited (OTCMKTS:MNSEF) as the company’s stock suffered from a steep selloff and ended the day with a decline of as much as 29%.
Market Stats
On Monday, MNSEF stock slumped 29.54% to $0.3277 with more than 242K, compared to its average volume of 153k shares. The stock has moved within a range of $0.3212 – 0.3500 after opening trading at $0.3488.
Magnis Energy Technologies Binding Graphite Offtake Agreement Signed with Traxys
The fall in the stock may be alarming but at the same time, it ought to be noted that the company did make a key announcement yesterday and it might be a good idea to take a look into it. Yesterday, Magnis Energy announced that it had been successful in signing an offtake agreement with the company Traxys Europe SA.
While the announcement was a significant one for the company and a closer look at the provisions of the agreement will make it clear. As per the agreement, the company is going to deliver and sale high purity and high quality graphite.
The graphite in question is going to be sources from the Nachu Graphite Project in South-East Tanzania.that is fully owned by Magnis Energy. That being said, the announcement led to a wave of negativity with regards to the Magnis Energy stock and it will now be interesting to see if the stock can reverse the trend over the coming days.
Key Quote
Traxys Managing Director Kevin Smith commented: “We have been keenly interested in the high purity graphite produced from Nachu for several years. There is a huge demand from lithium-ion battery producers for all battery materials including graphite and being able to produce a battery grade anode product via mechanical processes only is a very unique feature of Nachu Graphite. We are excited to be partnering with Magnis on this important project”. Magnis Chairman Frank Poullas commented
Traders Corner
MNSEF stock is trading below the 20-Day and 50-Day Moving averages of $0.37 and $0.37 respectively. However, the stock is trading above the 200-Day moving average of $0.30.
