David Lazar's OTC SPAC's/CUSTODIAN Plays

[Potse]

MAGAA(.50)...accumulated a position......

MAGAA mega thin.. this should be good

Hi, db7, I picked up some shares of the MAGAA shell on Friday. MAGAA has been pretty high up on my watchlist of shells ever since Lazar took over control. Of the Lazar shells I am interested in the most, MAGAA is definitely right near the top from an overall risk/reward standpoint. The structure/valuation/situation should be conducive for some very nice upside.

Through a combination of procrastination and trying to establish/increase positions in some other shells, I haven't bought any MAGAA until now. Initially I was planning on waiting until late September/October to take a position, but when I saw/sensed an increased level of shares coming available around this 50-60 cent area I figured it might be a good idea to get a position.

Prior to Lazar's involvement, the one thing about the MAGAA shell I did not like was the overall debt situation. But that area of concern I had is pretty much alleviated now that Lazar has taken control. He has already managed to eliminate the pre-existing notes payable without dilution. And now that Lazar has control of the promissory notes, my guess/hunch is he will completely eliminate all of that debt once he issues enough shares to himself for majority control of the common stock.

Interesting to note: Magna Acquisition LLC is the entity from which Lazar purchased his 200+K shares. By my calculations, Magna has spent a total of $832K on MAGAA (shares purchases, loan principal, subtract the $105K received from Lazar) since getting involved with this stock in 2005. Magna needs to get a share price over $2.05 on its remaining shares just to break even here. Either Magna did not want to continue funneling money into this shell, or they think Lazar will do a better job of getting a reverse merger completed here. Or maybe it is some combination of the above.

Also a bit interesting to note: Lazar included a lockout and a leakout agreement in the share purchase agreement......

Leakout Agreements. Sellers shall cause signed lockup (for three months after Closing) and leakout (20% of the shares owned by each person each month) agreements to be signed by each of the four current officers and directors regarding the MAGAA shares retained by each, and by Joel S. Kanter on behalf of the Magna LLC beneficial owners, other than Joel S. Kanter, and released from escrow at Closing. The form of the lockup/leakout agreement has been provided by Purchaser. If the beneficial owners of the Magna LLC shares cannot be located or are otherwise not signing lockup/leakout letters, the Purchaser, at its option, may give appropriate instructions to the Transfer Agent.

https://www.otcmarkets.com/filing/html?id=14265631&guid=cAL6Uq2e-NyIS3h