Why MGT Capital Investments Inc. (NYSEMKT:MGT) Shares Jumped 40%

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MGT Capital Investments Inc. (NYSEMKT:MGT) shares were up 39.66% on Tuesday to $2.50 and an additional 4.40% in after-hours trading. Share prices have been trading in a 52-week range of $0.15 to $5.58. The company has a market cap of $77.66 million at 25.86 million shares outstanding.

MGT Capital Investments is engaged in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the social casino industry. It operates in two segments. Its gaming portfolio includes a social casino platform Slot Champ and minority stakes in the skill-based gaming platform MGT Play and fantasy sports operator DraftDay Gaming Group, Inc. The company is shifting its focus in cybersecurity with industry pioneer John McAfee at its helm.

In a press release, MGT Capital Investments shared that plans to terminate the current Asset Purchase Agreement with D-Vasive. A few weeks back, the NYSE MKT informed the company that it didn’t approve the 43.8 million shares required to be issued to complete the closing of the D-Vasive merger. MGT Capital Investments has been in negotiations with all parties involved since then.

In this latest update, MGT Capital Investments announced that it has reached tentative agreements with John McAfee and Eric Anderson to execute employment agreements as Chief Executive Officer and Chief Technology Officer. Aside from that, it has reached a tentative agreement to exclusively license or acquire the Demonsaw source code and technology platform from D-Vasive. Under this revised deal structure, the company hopes it would be acceptable for NYSE MKT rules.

The company also clarified that the acquisition and commercialization plans of both the Sentinel technology, a network intrusion detector remain in place, and so does mobile device tracking platform E-Tagged technology. Also, it disclosed that its bitcoin mining operations are also fully owned and operated by MGT Capital Investments.

 

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