Board authorizes buyback of up to 1,000,000 shares of MGT stock
NEW YORK, Feb. 14 /PRNewswire-FirstCall/ -- MGT Capital Investments, Inc. (AMEX:MGT), a holding company focused on the Healthcare Information Technology ("HCIT") sector, today announced that its Board of Directors has authorized the repurchase of up to 1,000,000 shares, between February 14, 2008 and December 31, 2008.
Tim Paterson-Brown, Chairman and CEO, commented on the stock repurchase plan, stating: "The initiation of this stock repurchase program stems from recent news announcements by our two subsidiary companies. Medicsight PLC has announced a landmark preliminary agreement with the Systems Integration Division of Toshiba Medical Systems Corporation. Medicexchange PLC has announced a preliminary agreement for the acquisition of Maydeal.com, a Chinese medical equipment website. We see both of these announcements as accretive to shareholder value.
"Our belief is that the current market value of MGT shares does not accurately reflect the underlying value of the MGT group of companies. We are excited about Medicsight's future, including our expectation that the company will receive U.S. and Japanese regulatory approval for its ColonCAD software in 2008. We strongly believe that upon regulatory approval Medicsight will be the leading supplier of CAD software for virtual colonoscopy screening procedures in the U.S. and Japan." The repurchase of shares by MGT will be made from time to time in the open market on the American Stock Exchange ("AMEX") and in private transactions. The timing for repurchasing shares will be determined by MGT's broker based on its evaluation of market conditions and other factors. The Board of Directors of MGT may amend, suspend or terminate the repurchase program at any time.
Purchases may be made in open market or unsolicited negotiated transactions and shall comply with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended. This will allow the Company to repurchase shares at times when it would ordinarily not be in the market because of the Company's trading policies or possession of material non-public information.
The repurchase program does not require the Company to acquire a specific number of shares. The share repurchases will be funded from the Company's working capital. Any shares that are repurchased under the program will be returned to the state of authorized but unissued shares of common stock.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. is a holding company that focuses on investments in the global healthcare information technology market. The Company has two subsidiaries, Medicsight PLC and Medicexchange PLC.
Medicsight PLC (AIM: MDST) is a leading developer of computer-aided detection (CAD) software solutions. Medicsight's CAD solutions help clinicians utilizing Computed Tomography (CT) scans to identify, measure and analyze suspicious pathology within the colon and lungs. The Medicsight CAD products are validated against one of the world's largest databases of verified CT scan data collected from leading healthcare institutions from around the world. Medicsight products allow Radiologists and physicians to review scans more quickly and accurately -- saving both time and lives Medicexchange PLC provides medical imaging professionals with a global web portal containing an online sales, jobs and information channel for diagnostic, treatment and surgery planning solutions. This combined with a variety of relevant clinical papers, training materials and content gives these professionals access to information and products that they otherwise would have difficulty accessing.
Additional information can be found at http://www.mgtci.com/.
All forward-looking statements are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in company filings with the Securities and Exchange Commission.
Investor & Media enquiries:
KCSA Strategic Communications
Todd Fromer / Garth Russell
Tel: +1 212-896-1215 / 212-896-1250
/ DATASOURCE: MGT Capital Investments, Inc.
CONTACT: Investor & Media enquiries: Todd Fromer, +1-212-896-1215, , or Garth Russell, +1-212-896-1250, , both of KCSA Strategic Communications, for MGT Capital Investments, Inc.
Web site: http://www.mgtci.com/
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