MGT Capital Investments (MGT) Updates on Recent Business Performance, Q2 Highlights
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MGT Capital Investments, Inc. (NYSE: MGT) provided an update on its business and pending acquisitions, as well as its unaudited financial results for the three-month period ended June 30, 2016.
"In the second quarter the Company made significant progress implementing a multi-pronged strategy that has transformed MGT Capital Investments into the innovative cybersecurity company that we envisioned. With the broad set of differing technologies supporting the foundation of today's society, it is important that the cybersecurity protecting these technologies be just as diverse and forward thinking. This concept is the heart of the Company as we focus on developing cybersecurity technologies that protect the rapidly expanding Internet of Things, the Cloud, and mobile computing platforms," said John McAfee, the Company's proposed Executive Chairman and Chief Executive Officer.
"The upcoming shareholder vote on September 8th will allow the Company to move forward on several of the proposed events, including acquiring technologies from D-Vasive and Demonsaw, and the rebranding of the Company to 'John McAfee Global Technologies, Inc.' The details of these proposals are provided in the Definitive Proxy Statement filed by the Company with the SEC yesterday. In the meantime, the Company and its targeted acquisitions are moving ahead with the development and launch of several products."
Recent Product Highlights:
- Launch of Demonsaw 3.0, a secure and decentralized cross-platform information-sharing application with end-to-end encryption and without client P2P.
- Announced development of Clear Skies, a revolutionary new platform designed to allow a company to implement a layer of security for data stored in the Cloud, which is powered by the Demonsaw technology.
- Introduced Sentinel MGT, a cybersecurity product designed to protect corporate and enterprise intranets from sophisticated hacking threats, based on technology purchased from Cyberdonix.
- Assumed the development and ownership of e-Tagged technology, a cyber security product designed to alert and detect the identity of approaching individuals and vehicles.
Recent Corporate Highlights:
- Appointed technology pioneer, Nolan Bushnell, as an independent member of the Company's Board of Directors
- Established several advisory boards to guide development across different market segments
- Hacker Advisory Board was established to help steer the Company's technology in the ever changing field of cyber security threats, with members that include world renowned hackers Chris Roberts, Bryce Case, Alexander Heid, Bryan Seely and Vinny Troia.
- Cryptocurrency Advisory Board was established to ensure MGT provides the most state of the art products to its customers, and includes members such as Roger Ver, aka "Bitcoin Jesus," Erik Voorhees and Bruce Fenton.
- Emerging Large Scale Technology Advisory Board established to support cybersecurity products that address the needs of the intricate field of securing critical large scale cyber systems and its increasing connection to, and dependence on mobile devices, with members that include Steve Orenberg, former President of Kaspersky Labs.
Financial Highlights for the second quarter of 2016 Cash used in operations was $2.1 million in the second quarter of 2016, an increase of $1.7 million, as compared to the quarter ended March 31, 2016. The increase was primarily driven by legal and professional fees incurred in connection with the proposed D-Vasive acquisition. Such costs are expected to be materially lower in the current quarter as well as next quarter.
Cash and cash equivalents were $1.1 million as of June 30, 2016, compared with $0.3 million as of December 31, 2015. Post quarter-end, the Company completed an offering of unsecured promissory notes with net proceeds of $2.1 million. As of August 15, 2016, the Company has $2.9 million in cash plus $1.7 million in marketable securities.
Financial Results follow; per GAAP requirements, the operations of DraftDay.com are treated as discontinued operations. For further information, please refer to MGT's Form 10-Q filed this morning with the SEC, and available at the Company's corporate website, www.mgtci.com, or at www.sec.gov.
Investor Conference Call Management will hold a conference call with investors the week of September 12, 2016. During the call management will provide an update on its business strategy and cybersecurity solutions. Details for the call will be announced one week prior.
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