MGT Capital Investments, Inc. (NYSE MKT: MGT), announced today it retained Munich Innovation Group to license or sell MGT’s portfolio of international medical imaging patents associated with its wholly-owned legacy subsidiary, Medicsight, Inc. The divestiture of the Medicsight patents would conclude MGT’s plan to rationalize this subsidiary. The Company has not entered into any definitive agreements with respect to the sale of the patents.
Commenting on the announcement, Robert Ladd, MGT’s President and CEO, stated, “After review, we have determined that these imaging patents do not fit with MGT’s current business model. By partnering with Munich Innovation, a leading service provider for intellectual property monetization, we can better focus on the gaming patent infringement suit we filed in November 2012, as well as continuing to explore avenues to create and enhance shareholder value.”
As reported in the Company’s Current Report Form 8-K dated December 10, 2012, MGT has a debt-free balance sheet with stockholders’ equity of approximately $6.8 million. As it enters 2013, the Company has approximately $5.5 million of cash, 3.2 million common shares outstanding, plus 1.4 million preferred shares (convertible into common stock on a one-for-one basis).
About MGT Capital Investments, Inc.MGT and its subsidiaries are engaged in the business of acquiring and monetizing intellectual property rights. MGT Gaming, Inc., a majority-owned subsidiary, owns U. S. Patent No. 7,892,088 relating to casino gaming systems. In November 2012, MGT Gaming filed a patent infringement suit against Caesars Entertainment Corporation (NASDAQ GS: CZR), MGM Resorts International, Inc. (NYSE: MGM), WMS Gaming - a subsidiary of WMS Industries, Inc. (NYSE: WMS), Penn National Gaming, Inc. (NASDAQ GS: PENN), and Aruze Gaming America, Inc. In addition, the Company owns Medicsight, Inc., a medical technology company with patent ownership, as well as operations in imaging software and hardware devices. Medicsight’s computer-aided detection software assists radiologists with detection of colorectal polyps, and has received regulatory approvals including CE Mark and U. S. FDA clearance.