Mag Magna Corp Liquidation Value

Mag Magna Corp (MGNC) is a micro-cap shell-adjacent entity that underwent a full business pivot in Q3 FY2026: it abandoned poultry farming consulting and API services (zero revenue for the nine months ended January 31, 2026) and acquired mineral rights (21 Illinois parcels and 3 Arizona unpatented lode claims) via a January 2026 purchase agreement. The transaction closed partly in stock (2,000,000 shares valued at $0.80/share = $1.6M equity consideration) and partly in deferred cash ($300,000 acquisition payable, payable in installments through the second anniversary of closing). The company also experienced two changes of control within the fiscal year (Oleg Bilinski to Wang Gang in June 2025, Wang Gang to Harpreet Sangha in December 2025).

Under the liquidation lens, recovery to equity is deeply negative. Applying standard haircuts: Cash $26,400 recovers at 100% = $26,400. The dominant asset is $1.9M in mineral rights (tagged as MineralRights/OtherAssets), carried at the stock-consideration value of $1.6M plus $0.3M acquisition payable. Mineral rights are exploration-stage, unpatented or contractual, with no demonstrated production economics and no third-party appraisal disclosed. Under the liquidation lens, these warrant a 0% recovery haircut consistent with intangible/speculative asset treatment, yielding $0 realizable value. Intangible assets (API, website, software) were fully impaired in the current period ($103,745 impairment charge); net book value is $0 and the filing confirms IntangibleAssetsNetExcludingGoodwill = $0. Total liquidation asset pool: approximately $26,400.

On the liability side at face value: accounts payable $5,668; acquisition payable $300,000 (current, installment schedule running through year 2); related-party loans $195,869 (non-interest bearing, due on demand). Total liabilities = $501,537. Liquidation recovery to equity: $26,400 minus $501,537 = approximately negative $475,000, consistent with MFFAIS CLV/LLV/OLV of negative $448,737 (minor difference attributable to haircut methodology on the acquisition payable timing).

Change from prior filing (Q2 FY2026, period ended October 31, 2025): Total assets grew from ~$113,000 to $1.93M, driven entirely by the non-cash mineral rights acquisition. Total liabilities grew from ~$157,000 to $502,000, driven by the $300,000 acquisition payable. Equity swung from negative $44,000 to positive $1.42M on a GAAP basis, but this is entirely attributable to stock-consideration value assigned to speculative mineral rights. On a liquidation basis, recovery position deteriorated as the $300,000 acquisition payable was added to the liability stack with no corresponding liquid asset. The filing also discloses $300,000 in minimum exploration work commitments ($100,000 in calendar 2026, $200,000 in 2027) and a 2% net smelter return royalty retained by the seller — neither of which is XBRL-tagged separately; both are referenced in MD&A/footnotes only. Post-period, the company issued 7,300,000 shares to consultants under a new S-8 registration, valued at approximately $700,000 aggregate — a material dilution and cash-burn signal not reflected in the balance sheet date figures.