Company: MGNO
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000927089-25-000061
Chunk: 26

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 26
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olia Bancorp. In addition, our ESOP owns an additional 8.0% of the outstanding shares of common stock. As a result, an aggregate of 14.8% of our outstanding common stock is held by our directors and executive officers and their associates and by our ESOP. Further, additional shares will be held by management following the implementation of an equity incentive plan, which we intend to implement later this year assuming we receive shareholder approval.

There is a limited trading market in our common stock, which could hinder your ability to sell our common stock and may lower the market price of the stock.

Our common stock is quoted on the OTCQB Market operated by the OTC Markets Group under the trading symbol MGNO. The development of an active trading market depends on the existence of willing buyers and sellers, the presence of which is not within our control, or that of any market maker. The number of active buyers and sellers of the shares of common stock at any particular time may be limited, particularly in light of the small number of outstanding shares and the amount of stock held by our directors and executive officers and employee benefit plans. As a result, you could have difficulty selling your shares of common stock on short notice, and, therefore, you should not view the shares of common stock as a short-term investment. It is unlikely that an active trading market for the common stock will develop or that, if it develops, it will continue. Our daily trading volume for the seven weeks ended February 28, 2025 was 2,100 shares. The high and low price per share of stock ranged from $11.98 to 10.50. We encourage our shareholders to have long- term investment intent and to recognize that there is a limited trading market in the common stock. This may make it difficult to sell the common stock and may have an adverse impact on the price at which the common stock can be sold.

Our failure to effectively deploy the net proceeds of our stock offering may have an adverse effect on our financial performance and the value of our common stock.

We contributed $3.4 million of the net proceeds of the stock offering to Mutual Savings and Loan Association. We may use the remaining net proceeds to invest in short-term investments and for general corporate purposes, including repurchasing shares of our common stock to the extent permitted by applicable regulations. We also used a portion of the net proceeds we retained to fund a loan to our employee stock ownership plan to purchase shares of common stock in the stock offering. Mutual Savings and