Considers Exercising Rights as a
Shareholder
PALO ALTO,
Calif., Feb. 14, 2023 /CNW/ - Nellore Capital
Management LLC ("Nellore"), the largest holder of subordinate
voting shares ("SV Shares") of Magnet Forensics Inc. (TSX: MAGT)
("Magnet"), announces that on February 14,
2023, it acquired an aggregate of 67,625 SV Shares on
the open market through the facilities of the Toronto Stock
Exchange (the "Market Purchases").
Prior to the Market Purchases, Nellore had ownership and control
over 1,235,450 SV Shares, representing approximately 10.260% of the
issued and outstanding SV Shares (the "Outstanding Shares"). After
giving effect to the Market Purchases, Nellore has ownership and
control over an aggregate of 1,303,075 SV Shares, representing
approximately 10.8% of the of the 12,041,903 Outstanding Shares as
at November 8, 2022, as reported by
Magnet in its management's discussion and analysis for the three
and nine months ended September 30,
2022. The Market Purchases were made by Nellore at an average
price of $44.5454 per SV Share for
aggregate consideration of approximately $3,012,382.68.
On February 9, 2023 Nellore
publicly announced its intention to vote against the proposed
transaction with Morpheus Purchaser Inc. (the "Purchaser"), a newly
created corporation controlled by Thoma
Bravo, pursuant to which the Purchaser would acquire all of
the outstanding shares of Magnet by way of a shareholder approved
and court approved plan of arrangement (the "Arrangement").
The SV Shares held by Nellore are being held for investment
purposes and Nellore may, depending on market and other conditions,
(i) increase or decrease its beneficial ownership or control of the
SV Shares, (ii) engage in discussions with other shareholders or
representatives of the Issuer concerning, among other things, the
Arrangement, and the prospects, business or strategy of Magnet,
including potential changes to the foregoing, (iii) consider all of
its legal rights as a shareholder in connection with the
Arrangement, including by challenging the fairness of the
Arrangement in court,and/or (iv) take any other such actions with
respect to Magnet as Nellore may from time to time deem
appropriate.
An early warning report in connection with this press release is
being filed by Nellore in accordance with applicable Canadian
securities laws and will be available on the SEDAR website at
www.sedar.com and can also be obtained by contacting Sakya Duvvuru, Founder & Portfolio Manager
of Nellore, at 501-551-0128.
SOURCE Nellore Capital Management LLC