HARRISON,
N.Y., May 26, 2016
/PRNewswire/ --
MGT Capital Investments, Inc . (NYSE MKT:
MGT) announced today that it has entered into a
definitive asset purchase agreement to acquire certain technology
and assets from Demonsaw LLC , a provider
of a secure and anonymous file sharing software platform.
Using multiple layers of encryption (both symmetric and
asymmetric), Demonsaw offers users full control of data and also
offers private router services . Demonsaw is a fully
decentralized, mesh-based network that does not use P2P, providing
protection of IP addresses. Demonsaw is available in 32-bit and
64-bit versions for Windows, Apple OSX, Android, Raspberry Pi and
Ubuntu.
In conjunction with the anticipated acquisition, MGT is
pleased to announce the proposed appointment of Eric J. Anderson as Chief Technology Officer
upon closing of the transaction. Mr. Anderson, who is well
known as "Eijah" in the hacker community, is the founder of
Demonsaw. For the past five years he was an Associate Technical
Director and Lead Programmer for Rockstar Games where he
architected core engine and artificial intelligence code for
Grand Theft Auto, among the world's highest grossing video game
franchises. Before that Eric was Lead Programmer for Guitar Hero 6
at Activision and also served as Portfolio Architect of Security at
American Express. Eric has been a college faculty member,
keynote speaker at DEF CON and Hack Miami conferences, and holds a
Master's Degree in Computer Science from Arizona State
University. He is an active member of the hacking community
and is an avid proponent of Internet freedom.
Closing of the acquisition is contingent on customary
conditions including approval by MGT's stockholders. Major
terms of the deal include the payment to Demonsaw LLC members of
20.0 million restricted shares of MGT common stock. The proposed
share issuance is expected to amount to approximately 28% of the
Company's common stock on a pro-forma fully diluted basis at
closing, inclusive of shares of common stock to be issued in
connection with the Company's previously announced transaction with
D-Vasive, Inc. More detailed information can be found in the
Company's Form 8-K filed this morning with the Securities and
Exchange Commission, available at
www.sec.gov, or the MGT website at
www.mgtci.com.
John McAfee, proposed
Executive Chairman and Chief Executive Officer of MGT, stated,
"Artificial intelligence will be crucial to the next generation of
cybersecurity systems. Eijah's proposed appointment as Chief
Technology Officer will cement our edge in the creation of
cybersecurity products in this new paradigm of cyber
threats."
Mr. McAfee, concluded with this comment, "I want to
reiterate my personal commitment towards the creation of a major
force in cybersecurity. As a listed company with proper corporate
governance and regulatory standards, MGT will be the vehicle I use
to create wealth for all stockholders."
About MGT Capital Investments, Inc.
MGT and its subsidiaries are principally engaged in the
business of acquiring, developing and monetizing intellectual
property assets. MGT's portfolio currently includes social casino
and gaming platforms, and ownership stakes in DraftDay.com, a top
daily fantasy sports wagering platform and DraftDay Fantasy Sports,
Inc. operator of an online entertainment marketing and rewards
platform.
MGT also recently announced the execution of an asset
purchase agreement to acquire certain technology and assets
from D-Vasive Inc., a provider of
leading edge anti-spy software. In conjunction with the
anticipated acquisition, the Company also announced the proposed
appointment of John McAfee as
Executive Chairman and Chief Executive Officer upon closing of the
transaction. Further, MGT Capital also intends to change its
corporate name to John McAfee Global Technologies, Inc. Closing of
the acquisition is contingent on customary conditions including
approval by MGT's stockholders.
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.