This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MGT Capital Investments, Inc. Strengthens Balance Sheet With Institutional Investment

MGT Capital Investments, Inc. (NYSE-MKT: MGT.BC), announced today that it has entered into an agreement with a leading institutional investor providing $3.5 million of capital in support of the Company’s strategy to monetize intellectual property. The capital raise is comprised of the sale of $3.5 million of Senior Secured Convertible Notes plus Warrants to purchase MGT common stock.

Subject to customary closing conditions, the Notes will be convertible into the Company’s common stock at a fixed price of $3.00 per share; in certain instances the company can force conversion or redeem the Notes. The Notes carry an 8% interest rate and mature in 18 months. The Warrants have a five-year life and are exercisable at $3.00 per MGT share; the Company has the right to force exercise in certain instances.

Robert Traversa, the Company’s Chief Financial Officer, stated, “As CFO as well as a large stockholder of MGT, I am very mindful of enhancing long term shareholder value. This deal brings us a strategic investor with proven success in the intellectual property space, and sets a strong foundation for our expansion and development.” Added Robert Ladd, the Company’s President and Chief Executive Officer, “We are pleased with this investment as it further validates our strategy at this stage of MGT’s growth plan.”

The offering is being made in reliance upon the exemption from securities registration afforded by Section 4(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D, as promulgated by the United States Securities and Exchange Commission under the 1933 Act. Chardan Capital Markets LLC acted as sole placement agent in this transaction.

About MGT Capital Investments, Inc.

MGT and its subsidiaries are engaged in the business of monetizing intellectual property.

The Company’s majority-owned subsidiary, Medicsight, Ltd is a medical technology company with operations in imaging software and hardware devices, including computer-aided detection software used to assist radiologists with detection of colorectal polyps. The company's software has regulatory approvals including CE Mark and U. S. FDA clearance.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs