John McAfee to be appointed CEO; Eric "Eijah" Anderson to be appointed CTO
Company chooses technology acquisitions instead of appealing NYSE listing decision
HARRISON, N.Y., Nov. 4, 2016 /PRNewswire/ -- MGT Capital Investments, Inc. (OTC: MGTI) announced today that it plans to move ahead with the shareholder approved Asset Purchase Agreement (the "Agreement") for D-Vasive, which includes the acquisition of Demonsaw. Per the closing conditions of the Agreement, the Company will also execute employment agreements with John McAfee and Eric "Eijah" Anderson as Chief Executive Officer and Chief Technology Officer, respectively.
The Agreement was overwhelmingly approved by MGT's shareholders at the Company's Annual Meeting held on September 8, 2016. The terms of the Agreement are described in detail in MGT's definitive proxy statement for the meeting, which was filed with the Securities and Exchange Commission on August 15, 2016. This document can be accessed via the Company's website, www.mgtci.com or at www.sec.gov. In spite of the shareholder vote, a unilateral decision by the New York Stock Exchange prevented the Company from issuing the shares necessary to consummate the deal.
MGT's Board of Directors is determined to not permit the actions of the NYSE to derail the Company's commitment to building an innovative cybersecurity company. Therefore, the Board has decided not to appeal the decision of the NYSE to delist MGT's common stock, and to instead move forward with the acquisitions of D-Vasive and Demonsaw. This decision is based on our belief that an appeal would have little likelihood of success given the lack of transparency the NYSE provided prior to the appeal deadline. Furthermore, the Board anticipated that the appeal process would be costly and time consuming, further delaying the Company's business initiatives. The Company expects to be listed on OTCQB as soon as the acquisitions close.
Robert Ladd, President of MGT, stated, "Due to its apparent subjectivity, we still do not fully understand the unilateral decision or circumstances that led the NYSE to delist our common stock from the Exchange. Our Board of Directors doesn't believe the Company has received fair treatment from the NYSE, nor would it expect to receive fair treatment in an appeal process. Instead, we will focus on building MGT's business to prove our value to shareholders."
MGT's acquisitions of the D-Vasive and Demonsaw assets are at the core of the cybersecurity directive for the Company as established by technology pioneer John McAfee. These technologies will complement the Company's current commercialization plans for its Sentinel technology, a network intrusion detector, and its E-Tagged technology, a mobile device tracking platform. In addition, the Company's bitcoin mining operations are expanding, allowing MGT to leverage blockchain technologies as it advances its cybersecurity offerings.
John McAfee, Executive Chairman and incoming CEO explained, "This long delayed acquisition places MGT solidly among the frontrunners in the race to create the next generation of cybersecurity products. No area of research and development is more critical to the survival of our economy and even our way of life. The cyber weapons of the hacking world are gaining daily in sophistication and power, already outmatching most existing cybersecurity products. At MGT, we understand the urgency of this threat and must act accordingly. This acquisition is happening not a moment too soon."
"We are dedicated to our strategy and will establish MGT as a truly innovative cybersecurity company. Eijah and I are here to win. Watch us now," concluded Mr. McAfee.
D-Vasive offers a powerful tool for protection from the proliferation of invasive apps by consumer products companies, social networks, financial institutions and others. These invasive apps can secretly turn on a phone's microphone and camera, as well as monitor geographic movements and access contacts. The D-Vasive technology operates in a unique way, allowing the user to manage and control the device's internal hardware.
Demonsaw is 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.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. (OTC: MGTI) is in the process of acquiring a diverse portfolio of cyber security technologies. With cyber security industry pioneer John McAfee at its helm, MGT Capital is positioned to address various cyber threats through advanced protection technologies for mobile and personal tech devices, including tablets and smartphones.
MGT Capital intends to change its corporate name to "John McAfee Global Technologies, Inc."
For more information on the Company, please visit http://ir.stockpr.com/mgtci.
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.
KCSA Strategic Communications
Director of Corporate Communications
MGT Capital Investments, Inc.
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SOURCE MGT Capital Investments, Inc.
Released November 4, 2016