MGT Capital (MGTI) to Proceed with D-Vasive Acquisition; Enters Employment Agreements with McAfee, Anderson
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MGT Capital Investments, Inc. (OTC: MGTI) announced that it plans to move ahead with the shareholder approved Asset Purchase Agreement (the "Agreement") for D-Vasive, which includes the acquisition of Demonsaw. Per the closing conditions of the Agreement, the Company will also execute employment agreements with John McAfee and Eric "Eijah" Anderson as Chief Executive Officer and Chief Technology Officer, respectively.
The Agreement was overwhelmingly approved by MGT's shareholders at the Company's Annual Meeting held on September 8, 2016. The terms of the Agreement are described in detail in MGT's definitive proxy statement for the meeting, which was filed with the Securities and Exchange Commission on August 15, 2016. This document can be accessed via the Company's website, www.mgtci.com or at www.sec.gov. In spite of the shareholder vote, a unilateral decision by the New York Stock Exchange prevented the Company from issuing the shares necessary to consummate the deal.
MGT's Board of Directors is determined to not permit the actions of the NYSE to derail the Company's commitment to building an innovative cybersecurity company. Therefore, the Board has decided not to appeal the decision of the NYSE to delist MGT's common stock, and to instead move forward with the acquisitions of D-Vasive and Demonsaw. This decision is based on our belief that an appeal would have little likelihood of success given the lack of transparency the NYSE provided prior to the appeal deadline. Furthermore, the Board anticipated that the appeal process would be costly and time consuming, further delaying the Company's business initiatives. The Company expects to be listed on OTCQB as soon as the acquisitions close.
Robert Ladd, President of MGT, stated, "Due to its apparent subjectivity, we still do not fully understand the unilateral decision or circumstances that led the NYSE to delist our common stock from the Exchange. Our Board of Directors doesn't believe the Company has received fair treatment from the NYSE, nor would it expect to receive fair treatment in an appeal process. Instead, we will focus on building MGT's business to prove our value to shareholders."
MGT's acquisitions of the D-Vasive and Demonsaw assets are at the core of the cybersecurity directive for the Company as established by technology pioneer John McAfee. These technologies will complement the Company's current commercialization plans for its Sentinel technology, a network intrusion detector, and its E-Tagged technology, a mobile device tracking platform. In addition, the Company's bitcoin mining operations are expanding, allowing MGT to leverage blockchain technologies as it advances its cybersecurity offerings.
John McAfee, Executive Chairman and incoming CEO explained, "This long delayed acquisition places MGT solidly among the frontrunners in the race to create the next generation of cybersecurity products. No area of research and development is more critical to the survival of our economy and even our way of life. The cyber weapons of the hacking world are gaining daily in sophistication and power, already outmatching most existing cybersecurity products. At MGT, we understand the urgency of this threat and must act accordingly. This acquisition is happening not a moment too soon."
"We are dedicated to our strategy and will establish MGT as a truly innovative cybersecurity company. Eijah and I are here to win. Watch us now," concluded Mr. McAfee.
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