HARRISON, N.Y., Sept. 17, 2015 /PRNewswire/ -- MGT Capital
Investments, Inc. (NYSE MKT: MGT) today provided an update of its
recent activities and outlook.
As announced on September 9, 2015,
the Company completed the sale of its daily fantasy sports assets
to a new entity formed by Viggle Inc. (NASDAQ: VGGL) and Sportech
Digital, a subsidiary of Sportech PLC. The new company,
called DraftDay Gaming Group, Inc (DDGG). will continue to offer
the same high quality daily fantasy sports experience directly to
consumers and to businesses desiring turnkey solutions to new
revenue streams.
MGT received approximately $5.5
million in total consideration from the sale, including:
- $250,000 in cash received on
July 22, 2015.
- $234,375 in cash to be paid by
VGGL on or before September 29,
2015.
- $1,875,000 in cash to be paid by
VGGL on or before March 8, 2016.
- 1,269,342 share of VGGL common stock, presently valued at
$1,800,000.
- 10% equity in DDGG, valued at $1,020,000, using the initial valuation metrics
on formation.
- Three-year warrants to purchase roughly 6% more equity in DDGG,
at the initial valuation.
MGT currently has 14.2 million common shares outstanding and has
not utilized its at-the-market financing facility since
May 7, 2015. The company carries zero
debt and has no dilutive securities. As a result of the asset
sale, MGT has reduced its operating expenses by $125,000 monthly, and did not suffer any one-time
cash charges. Further cost cutting measures are currently
being analyzed.
MGT retains operating assets in intellectual property, having
recently received a third patent in its family of skill based slot
machines. Nevada and
New Jersey have legalized wagering
on games of skill, and we believe the patents will have great
utility in the design of slot machines for the millennium
generation. Also, in the past month, MGT received notice from
the NJ Division of Gaming Enforcement confirming that MGT's
services license application has been deemed complete, meaning that
MGT is eligible to enter into an agreement with a casino
licensee. Lastly, the Company is exploring publishing
partnerships to launch its social slot machine mobile app called
SlotChamp. The engineering and design work are largely
complete, and the game is addictive and beautiful.
Given MGT's significant ongoing equity interest in the fast
growing daily fantasy sports space, we suggest stockholders listen
to the fiscal fourth quarter conference call of Viggle, which will
feature participation from Richard
Roberts, CEO of DraftDay Gaming Group. The call will
take place at 4:30 PM EDT on
Monday September 21, 2015, with the
live webcast available at Viggle's investor relations website.
About MGT Capital Investments, Inc.
MGT Capital and its subsidiaries own and operate social and real
money gaming sites online and in the mobile space, including
MGTplay.com and SlotChamp™. In addition, the
Company owns intellectual property relating to slot machines and
has asserted its claims via patent infringement lawsuits. MGT
also has ownership stakes in DraftDay.com, a top daily fantasy
sports wagering platform and Viggle Inc., operator of an online
entertainment marketing and rewards platform with 10 million
registered users.
Forward-looking Statements
This press release contains forward-looking statements. The
words or phrases "would be," "will allow," "intends to," "will
likely result," "are expected to," "will continue," "is
anticipated," "estimate," "project," or similar expressions are
intended to identify "forward-looking statements." MGT's financial
and operational results reflected above should not be construed by
any means as representative of the current or future value of its
common stock. All information set forth in this news release,
except historical and factual information, represents
forward-looking statements. This includes all statements about the
Company's plans, beliefs, estimates and expectations. These
statements are based on current estimates and projections, which
involve certain risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. These risks and uncertainties include issues related
to: rapidly changing technology and evolving standards in the
industries in which the Company and its subsidiaries operate; the
ability to obtain sufficient funding to continue operations,
maintain adequate cash flow, profitably exploit new business,
license and sign new agreements; the unpredictable nature of
consumer preferences; and other factors set forth in the Company's
most recently filed annual report and registration statement.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis
only as of the date hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Readers should
carefully review the risks and uncertainties described in other
documents that the Company files from time to time with the U.S.
Securities and Exchange Commission.
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SOURCE MGT Capital Investments, Inc.