HARRISON, N.Y., Oct. 9, 2015 /PRNewswire/ -- MGT Capital
Investments, Inc. (NYSE MKT: MGT) announced today it has entered
into agreements with several accredited investors providing
$700,000 of equity capital. The
capital raise is comprised of the sale of 2.8 million Units, with
each Unit consisting of one share of the Company's common stock,
and a three-year warrant to purchase two shares of common
stock.
The Warrants are exercisable at a price of $0.25 per common share on the earlier of (i) one
year from the date of issue or (ii) the occurrence of certain
corporate events, including a private or public financing, subject
to approval of the lead investor, in which the Company receives
gross proceeds of at least $7,500,000; a spinoff; one or more acquisitions
or sales by the Company of certain assets approved by the
stockholders of the Company; or a merger, consolidation,
recapitalization, or reorganization approved by the stockholders of
the Company.
The investment was led by Barry
Honig, a private investor and a specialist in corporate
finance. Mr. Honig is currently Co-Chairman and Chief Executive
Officer of Majesco Entertainment Company (COOL), and was a former
founder and Co-Chairman of interClick, which was acquired by Yahoo
in 2011 for $280 million. He was also
the former Co-Chairman of ChromaDex Corporation (CDXC), and is a
current Director and the largest investor in Pershing Gold
Corporation (PGLC).
As recently reported, MGT closed the sale of its daily fantasy
sports business and received approximately $5.5 million of cash and securities in total
consideration. "With MGT's further enhanced balance sheet and
reduced cost structure, I believe the time is perfect to consider
all methods to create value for shareholders," stated Robert Ladd, the Company's Chief Executive
Officer.
The offering was made in reliance upon the exemption from
securities registration afforded by Section 4(a)(2) of the
Securities Act of 1933, as amended, and Rule 506 of Regulation D,
as promulgated by the United States Securities and Exchange
Commission under the 1933 Act. The foregoing description of
the offering is not complete and is qualified by reference to the
full text of the transaction agreements, which are filed as
Exhibits to the Company's Current Report on Form 8-K filed with the
SEC on October 9, 2015.
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.