HARRISON, N.Y., April 1, 2014 /PRNewswire/ -- MGT Capital
Investments, Inc. (NYSE MKT: MGT) announced today that it has
entered into an asset purchase agreement with CardRunners Gaming,
Inc. to acquire the DraftDay fantasy sport business and software
platform. MGT will pay $600,000
in cash and approximately 100,000 shares of common stock to acquire
the DraftDay assets. The transaction is expected to close
within one week.
DraftDay operates one of the industry's largest and most
respected daily fantasy sports wagering sites, ranking fourth
highest among competitors in the most recent Alexa reports.
DraftDay is also a leader in the popular quick-pick style of
skill-based fantasy sports gaming. Andrew Wiggins, co-founder of DraftDay stated,
"We have worked tirelessly to build an outstanding product and
loyal player base. With MGT's support, DraftDay will have
greater resources to grow this business to new heights. Our
employees look forward to making MGT the market leader in daily
fantasy sports."
Robert Ladd, Chief Executive
Officer of MGT, summarized today's news, "This acquisition
represents a unique financially compelling opportunity and
tremendous complement to our online gaming businesses.
DraftDay will elevate our fantasy sports segment to an entirely new
level. We are very pleased to welcome the players and
employees of DraftDay."
Added Robert Traversa, MGT's
Chief Financial Officer, "Combined with the recently initiated
joint venture with Vegas Insider, we expect that the acquisition of
DraftDay will be accretive to our operating results, with MGT
Sports projected to become cash flow positive by yearend."
About MGT Capital Investments, Inc.
MGT and its subsidiaries are engaged in the business of
acquiring, developing and monetizing assets in the online and
mobile gaming space, as well as the casino industry.
Subsidiary MGT Studios is publisher of social games and real
money games of skill, and will launch www.MGTplay.com and
SlotChamp™ in 2014.
MGT Gaming, a majority owned subsidiary, owns U.S. Patents Nos.
7,892,088 and 8,500,554 relating to certain casino slot machine
systems and has filed patent infringement lawsuits against WMS
Gaming (a subsidiary of Scientific Games Corporation), and
others.
The Company also owns a majority interest in FanTD LLC, the
operator of FanThrowdown.com, one of the leading online daily
fantasy sports wagering websites. Another majority owned
subsidiary, MGT Interactive, owns REAL DEAL POKER™, an innovative
online poker technology with a patented card shuffling system,
allowing for regulatory transparency and auditability, and a higher
level of realism.
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.