Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 28

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 28
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 and all existing holders of our Ordinary Shares have agreed, with limited exceptions, not to sell any
shares for a period of 180 days following the completion of our Initial Public Offering, without the prior written consent of the
underwriters. However, the underwriters may release these securities from the restrictions at any time. We cannot predict what
effect, if any, market sales of securities held by our controlling shareholder or any other shareholder, or the availability of
these securities for future sale, will have on the market price of our Ordinary Shares.

Short
selling may drive down the market price of our Ordinary Shares.

Short
selling is the practice of selling shares that the seller does not own but rather has borrowed from a third party with the intention
of buying identical shares back at a later date to return to the lender. The short seller hopes to profit from a decline in the value
of the shares between the sale of the borrowed shares and the purchase of the replacement shares, as the short seller expects to pay
less in that purchase than it received in the sale. As it is in the short seller’s interest for the price of the shares to decline,
many short sellers publish, or arrange for the publication of, negative opinions and allegations regarding the relevant issuer and its
business prospects in order to create negative market momentum and generate profits for themselves after selling the shares short. These
short attacks have, in the past, led to selling of shares in the market. If we were to become the subject of any unfavorable publicity,
whether such allegations are proven to be true or untrue, we would have to expend a significant amount of resources to investigate such
allegations and/or defend ourselves. While we would strongly defend against any such short seller attacks, we may be constrained in the
manner in which we can proceed against the relevant short seller by principles of freedom of speech, applicable state law or issues of
commercial confidentiality.

Because
we do not expect to pay dividends in the foreseeable future, you must rely on price appreciation of our Ordinary Shares for a return
on your investment.

We
currently intend to retain all of our available funds and any future earnings after the IPO to fund the development and growth of our
business. As a result, we do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment
in our shares as a source for any future dividend income. Our directors have complete discretion as to whether to distribute dividends,
subject to certain requirements of the relevant laws. Even