MGT Capital Investments Announces Shareholders’ Equity Of $6.8 Million

MGT Capital Investments, Inc. (NYSE-MKT: MGT.BC), announced today pro-forma Stockholders’ Equity as of September 30, 2012 which incorporates a number of financial transactions that occurred subsequent to the end of the Company’s third quarter. As part of its 2012 third quarter report filed on Form 10-Q, the company previously included an unaudited balance sheet reporting Stockholders’ Equity of approximately $935,000, prior to equity from Non-controlling Interests (NCI). The Company also announced its Stockholders’ Equity as of December 5, 2012.

After adjusting for subsequent events as more fully described below, MGT is pleased to announce Stockholders’ Equity of approximately $7.4 million (prior to NCI) on a pro-forma basis for September 30, 2012; after adjusting for the Company’s on-going operating losses in the quarter to date (currently estimated at $600,000), the Company announced Stockholders’ Equity of $6.8 million as of December 5, 2012. Subject to review by the Corporate Compliance Staff of NYSE Regulation, Inc., MGT may be deemed back in compliance with the NYSE MKT LLC’s continued listing standards.

Pro-forma Stockholders’ Equity

The following table sets forth MGT’s Stockholders’ Equity position as of September 30, 2012 as reported, and as adjusted on a pro-forma basis to reflect subsequent events.

			September 30, 2012 (unaudited, $ in thousands)
			Actual			Repayment and retirement of convertible note			Equity financings (net of associated expenses)			Medicsight consolidation			Pro-forma (as adjusted)
Stockholders' Equity:
Preferred stock, $0.001 par value;			$	–		$	–		$	1		$	–		$	1
Common stock, $0.001 par value;				2			–			3			–			5
Additional paid in capital				290,049			(181)			5,860			2,298			298,026
Other comprehensive loss				(6,703)			–			–			48			(6,655)
Accumulated deficit				(282,413)			(1,123)			(396)			–			(283,932)
MGT Stockholders’ Equity				935			(1,304)			5,468			2,346			7,445
Non-controlling interests*				3,134			–			–			(2,379)			755
Total Equity			$	4,069		$	(1,304)		$	5,468		$	(33)		$	8,200
* Includes minority interests in MGT Gaming, Inc. and Medicsight Ltd.

The pro-forma information above is estimated only and our actual Stockholders’ Equity position may be different based on the audit of our financial statements. You should read this table together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our December 31, 2011 and September 30, 2012 financial statements and the related notes which are incorporated by reference in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012.

Below is a summary of the financial transactions that occurred subsequent to September 30, 2012.

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