Shareholders right to have misgivings over Magnus Energy's headlong rush into microalgae farming

AT a recent annual general meeting (AGM), Magnus Energy shareholders grilled the board for repeatedly sinking cash into deals with partners that have failed to deliver on what they had promised to do, yet did not have the wherewithal to pay back monies they had taken from Magnus.

One Indonesian contractor owes Magnus S$7.4 million as a result of the cancellation of four projects. Another company owes Magnus US$1.2 million in advance payment for a pre-IPO deal that did not materialise - and it wants to refund Magnus in the form of solar panels instead of cash.

Shareholders also homed in on a US$9.4 million investment in an algae-to-oil project that has remained unviable after more than two years. They were unhappy that Magnus has no recourse from the contractor if the project fails and blamed the management for not structuring the deal with greater care.