Nellore Continues to Acquire Shares of Magnet Forensics

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

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