Mag Magna Corp 8-K

What Happened

• Mag Magna Corp (OTCID: MGNC) filed an 8-K (dated March 31, 2026) reporting that, effective March 27, 2026, it entered into Lock-Up and Leak-Out Agreements with 11 consultants who had been issued a total of 10,000,000 shares under the company’s 2026 Stock Incentive Plan and Form S-8 registration. The agreements cover 8,900,000 shares (89% of the 10,000,000 consultant shares) and were announced in a company press release quoting CEO Jamal Khurshid.

Key Details

• Lock-up Period: no transfers through and including December 31, 2026 (effective March 27, 2026).
• Leak-out Period: January 1 – June 30, 2027, with a Monthly Limit of 100,000 shares and a Daily Limit of 20,000 shares.
• Termination: agreements can end early for a breach or if the common stock closes above $5.00 for 10 consecutive trading days after the lock-up period; the Board may also reduce or waive restrictions.
• Other terms: transferees of the locked shares are bound by the same restrictions; the company and participating shareholders exchanged mutual releases of claims.

Why It Matters

• For investors, the lock-ups temporarily reduce the available float from these consultants, which can help limit near-term selling pressure and promote more stable trading while the company advances its rare earth mining plans.
• After Dec 31, 2026, up to 100,000 shares per month (and up to 20,000 per day) may be sold by participating consultants through June 30, 2027, so additional supply could enter the market gradually during that period.
• The lock-ups can terminate early if the stock trades above $5 for 10 straight days or if the Board waives restrictions—events that would increase potential share availability. Investors should note these dates and thresholds when assessing future liquidity risk.