John McAfee's MGT revises D-Vasive deal, shares surge 40 percent

October 11, 2016 4:08 PM EDT

Computer software pioneer John McAfee speaks with reporters outside his hotel in Miami Beach, Florida December 13, 2012. REUTERS/Joe Skipper

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SAN FRANCISCO (Reuters) - MGT Capital Investments (NYSE: MGT) surged 40 percent on Tuesday after it said it was revising its plan to acquire anti-virus software pioneer John McAfee's D-Vasive.

MGT said that under a new deal structure, it was terminating its asset purchase agreement and instead will license technology from D-Vasive, and make McAfee its chief executive as planned. MGT also plans to change its name to "John McAfee Global Technologies, Inc."

On Sept. 20, MGT said the New York Stock Exchange denied approval of the listing of 43.8 million shares that were central to its plan to buy D-Vasive.

"MGT believes that such a revised deal structure would be acceptable under NYSE MKT rules," MGT said.

A day earlier, MGT said it had received a subpoena from the U.S. Securities and Exchange Commission but did not believe it was or would be subject to any enforcement proceedings.

Trading in MGT's shares had been halted at a loss of 5 percent ahead of the company's press release.

In May, MGT surged more than 1,200 percent after the mobile gaming company with almost no revenue announced it would transform into a cybersecurity company and be led by John McAfee.

John McAfee was the subject of a media frenzy in 2012 when he fled his home in Belize after police sought to question him about the murder of a neighbor. They ultimately said he was not a suspect.

MGT shares were up 71 cents, or about 40 percent, at $2.50 on Tuesday afternoon.

(Reporting by Noel Randewich; Editing by David Gregorio)

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