Company: MAGH
Filing Date: 2025-06-10
Form Type: CORRESP
Source: 0001641172-25-014488
Chunk: 2

Company: Magnitude International Ltd
Filing Date: 2025-06-10
Form: CORRESP
Chunk 2
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Herlin”) and BNL Engineering Pte. Ltd. (“BNL”) were transferred to the Company’s
wholly owned subsidiary, Elec Power Ltd (“Elec Power”), resulting in our Company Group being comprised of Elec Power,
Herlin and BNL as our direct and indirect wholly-owned subsidiaries, respectively. The Company issued 1 Ordinary Share credited
as fully paid to XJL as consideration. On May 27, 2025, the Company effected a 1:40 forward stock split and XJL, Beyond Merchant, KeyStone
Builders, Kingkey, Canningale, SwiftBuild, Ms. Cheng, Mr. Chi and Mr. Choo surrendered a portion of their ordinary shares to the Company,
respectively. Keystone Builders, Kingkey, SwiftBuild, Canningale, Beyond Merchant and Ms. Cheng are each a “Resale Shareholder.”

How long the stockholders have held the shares. Each of Beyond Merchant,
Keystone Builders, Kingkey, Canningale, and SwiftBuild acquired their shares in the Company on December 27, 2024 paying the full purchase
price for their interests in the Company and bearing the full investment risk of holding the shares. Similarly, Ms. Cheng acquired her
interest on January 10, 2025. There was no certainty that there would be a successful public offering, meaning they would be minority
shareholders in a private company. It was the understanding that they would not be permitted to sell their Ordinary Shares until there
has been a successful listing. For this risk, it was agreed with the Resale Shareholders that they would be permitted to register their
shares for resale as resale shareholders contemporaneous with our initial public offering (the “Resale Shares”). It was agreed
that they can only sell their resale shares after the listing and not as part of the offering. This arrangement is intended to provide
an opportunity for investors who acquired shares in the offering to exit first. CD&I 116.19 and CD&I 139.11 contemplate that a
valid secondary offering could occur immediately following the closing of the PIPE with no minimum holding period in the event the Company
has completed the private placement of all of the securities it is registering and the investor is at market risk at the time of filing
of the resale registration statement. Since there is no mandatory holding period that must be overcome for a PIPE transaction to be followed
by a valid secondary offering and the Resale Shareholders were at market risk when they acquired