Mag Magna Raises $417K via Highly Dilutive Convertible Notes
Summary
Mag Magna Corp secured $417,000 in net proceeds from convertible notes, with conversion terms at 60% of the lowest traded price over 20 days, signaling substantial future dilution. This capital infusion from CFI, Silvercrest, and GW Capital is for general working capital. The company's Q3 report indicated a going concern warning and zero revenue, making any cash critical for survival. However, these highly dilutive terms underscore the ongoing financial challenges, following a much larger $30 million equity purchase agreement announced in March.
At the time of this announcement, MGNC was trading at $0.78 on OTC in the Industrial Applications And Services sector. The 52-week trading range was $0.03 to $15.99. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.