MGT Capital Investments Inc. (NYSEMKT:MGT) shares tanked 22.70% on Monday to $2.52 but recovered 6.35% in after-hours trading. The company has a market cap of $61.75 million at 25.86 million shares outstanding.
MGT Capital Investments is a company that 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 through its subsidiaries Medicsight, Inc., MGT Sports, Inc., MGT Studios, Inc. and MGT Gaming, Inc. The company operates through two key segments: Gaming and Intellectual Property. 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.
On September 15, MGT Capital Investments announced that it received a subpoena from the US Securities and Exchange Commission requesting certain information and is fully cooperating with the SEC request. Earlier this week, Khang & Khang LLP announced that it is investigating claims against the company and reminded investors to get in touch with them if they’ve purchased shares of MGT Capital Investments.
Also on Monday, Goldberg Law PC has announced that it is investigating the company concerning possible violations of federal securities laws and advised shareholders to get in touch with them to discuss their rights without any cost. Goldberg Law PC represents shareholders around the world and specializes in securities class actions and shareholder rights litigation.
There haven’t been much details disclosed yet but John McAfee has noted that the company has no indication or reason to believe it will be subject to enforcement proceedings. MGT Capital Investments is also involved in acquiring a portfolio of cybersecurity technologies and is in the process of buying D-vasive, which is a maker of anti-spying software, and Demonsaw, which is a provider of anonymous file sharing.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.