HARRISON, N.Y., Sept. 29, 2014 /PRNewswire/ -- MGT Capital
Investments, Inc. (NYSE MKT: MGT) announced today that it has
reached an agreement with Iroquois Master Fund Ltd. and certain of
its affiliates (collectively "Iroquois") under which a new
independent director proposed by Iroquois will stand for election
in place of a management member on the Company's Board of
Directors.
As part of the agreement, at the Company's 2014 Annual Meeting,
Iroquois will vote all of its shares in support of the slate of
four directors consisting of current directors H. Robert Holmes, Michael Onghai and
Robert Ladd, and the new independent
director nominee Joshua Silverman, a
co-founder of Iroquois Capital. The agreement also includes
standstill provisions and the reimbursement of up to $100,000 of certain Iroquois expenses.
"We believe this agreement is in the best interests of the
Company and our stockholders," stated Mr. Ladd, Chief Executive
Officer of MGT. "Best corporate governance practices are fostered
by aligning leadership with stock ownership; with over 20% of the
Company's stock held by officers and directors, we remain extremely
focused on performance."
Added Mr. Silverman, "We are pleased to have reached an amicable
agreement with MGT and look forward to working constructively
together with the Board and management team to help maximize value
for all stockholders. In addition to today's agreement,
Iroquois has agreed to buy $250,000
of common stock from the Company at a price of $1.00 per share as a further signal of our
commitment and support."
The Company also announced that its annual meeting of
stockholders has been scheduled for December
18, 2014 at its corporate offices. Stockholders of record as
of October 23, 2014 will be eligible
to vote for the proposed slate of directors and other proposals for
consideration that will be included in the Company's proxy
statement scheduled for filing with the Securities and Exchange
Commission.
About MGT Capital Investments, Inc.
MGT Capital and its subsidiaries operate social and real money
gaming sites online and in the mobile space, including ownership of
the 3rd largest daily fantasy sports wagering platform,
www.DraftDay.com. The Company also offers games of skill
through www.MGTplay.com and social casino games with
SlotChamp™, and has created an online portal for fantasy
sports news and commentary, www.FantasySportsLive.com. In
addition, the Company owns intellectual property relating to slot
machines and has asserted its claims via patent infringement
lawsuits.
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.