Its really clear to me what has just occurred.Magnolia runs a...

Its really clear to me what has just occurred.

Magnolia runs a funds management business.

Their ability to 1. retain existing investors
2. attract new investors
3. charge performance fees

all hinges on the market value of their existing positions.

This offer seems to me like a cheap shot at raising the share price until the close of the quarter and year end.

It doesnt seem like they put any thought into their highly conditional bid...if one can call it that.

Magnolia supported the last cap raise in a big way and now they see that management have failed to gain the scale required to make profits in a business model that requires massive volume taking low margin....and cant see a way of getting their money out.

This is just my personal opinion and I am most likely wrong.

But cant see any other reason for this unusual play.

10x