Shares of MGT Capital Investments (MGT) leapt as much as 11% on Tuesday after the company said it would appoint the founder of video gaming pioneer Atari to its board as it works to transform its focus to cybersecurity from gaming.
The stock closed up Tuesday 1.5% at $2.42 after touching a high of $2.64 after the company announced the appointment of Nolan Bushnell as an independent director. Bushnell has already assumed the post.
MGT soared out of obscurity last month when it announced an agreement to buy the D-Vasive cybersecurity business of John McAfee, the namesake for the now ubiquitous antivirus company bought by Intel (INTC) - Get Report in 2001. The shares rocketed from a 52-week low of 15 cents to as high as $5.58 as investors hoped the eccentric 70-year-old McAfee could breathe some life into the company.
The shares gained 1 cent in extended trading to $2.39.
McAfee has been proposed as CEO of the combined company, which is also renaming itself John McAfee Global Technologies. In a statement, McAfee Tuesday said Bushnell would help the new company find potential partners in its battle against cyber crime.
"In his career, he has founded more than 20 high tech companies, giving him unprecedented knowledge of the tech industry," McAfee said.
The appointment comes after MGT in late May agreed to buy Demonsaw, an anonymous messaging and filesharing platform. Demonsaw founder, who says the company's encryption keeps messages safe from prying eyes, will become chief technology officer of MGT as part of that agreement.