Company: MAGH
Filing Date: 2025-06-10
Form Type: CORRESP
Source: 0001641172-25-014488
Chunk: 4

Company: Magnitude International Ltd
Filing Date: 2025-06-10
Form: CORRESP
Chunk 4
---
 ago and have borne the market risk of these shares since
then. The Resale Shares registered for resale by each of the Resale Shareholders represent less than 4.67% of the Company. The Commission
has historically been concerned about the distribution of “toxic” convertible securities with floating conversion prices or
transactions involving deferred payment of purchase price by short-term investors seeking immediate resale of shares, such that the initial
purchasers were not at market risk and public shareholders were subject to substantial dilution and often substantial reductions in trading
prices. In the transactions at issue, the Resale Shareholders in general purchased their securities more than six months ago. The volume
of shares being registered for resale, standing alone, should not lead to the conclusion that the secondary transaction is a primary offer
on behalf of the Company. For example, in its response to Securities Act Forms, Compliance and Disclosure Interpretations, question 612.12,
the Staff permitted affiliates to effect a block sale of 73% of the issued outstanding shares of the issuer under Rule 415(a)(1)(i). This
interpretation makes clear that volume of shares, standing alone, does not convert a secondary transaction into a primary offering.

Whether
the stockholders are in the business of underwriting securities. To the Company’s knowledge, none of the Resale Shareholders is
in the business of underwriting securities nor are they broker dealers; rather, the Company understands that they are entities
that make private equity investments and the facts and circumstances support the conclusion that the Resale Shareholders are long-term
investors who did not purchase the securities with a view to further distribution. Similarly, the Company is not aware of any evidence
that would point to the fact that the Resale Shareholders had any plan to act in concert with a third party to effect a distribution
of the Resale Shares. Rule 100 of Regulation M defines a “distribution” as “an offering of securities, whether or not
subject to registration under the Securities Act, that is distinguished from ordinary trading transactions by the magnitude of the offering
and the presence of special selling efforts and selling methods”. The Company is not aware of any evidence that would suggest that
any such special selling efforts or selling methods (such as investor presentations or road shows) by or on behalf of the Resale Shareholders
have or are currently intended to take place if the draft registration statement on Form F-1 and resale prospectus are eventually declared
effective.

Whether under all the circumstances it