HARRISON, N.Y., June 12, 2015 /PRNewswire/ -- MGT Capital
Investments, Inc. (NYSE MKT: MGT) announced today that it has
signed an Asset Purchase Agreement to sell its daily fantasy sports
assets including DraftDay, the third largest operator in the daily
fantasy sports industry, together with the MGT Sports
business-to-business network. The transaction will provide MGT with
approximately $7.0 million in total
consideration, including $4.0 million
cash; MGT will also retain an equity interest in the new venture
(including common stock and warrants), with an initial valuation of
up to $3.0 million. Subject to
financing and other closing conditions, the Company expects the
deal to close before the end of the current quarter.
Random Outcome USA Inc., the
new entity formed to acquire DraftDay, will raise funds from
investors led by a global investment bank that is a leader in the
gaming industry in North America.
Following its planned financing, the new business will be managed
by Sportech Digital, a subsidiary of Sportech Plc (LON: SPO), one
of the world's leading B2B organizations in the sports, gaming and
technology sectors, having operated in the regulated gaming sector
for over 90 years. Curtiss Wm. Krawetz, CEO of Random Outcome said,
"Infusing a leading daily fantasy sports business with the
capabilities and resources of an operator of Sportech's caliber
creates the dominant business-to-business player in the DFS
space."
Rich Roberts, President of
Sportech Digital stated, "A focused daily fantasy sports business
to be delivered on a B2B partnership basis to the regulated gaming
industry has the potential to quickly disrupt the rapidly growing
market."
"Today's announcement reinforces our mandate to grow stockholder
value," said Robert Ladd, Chief
Executive Officer of MGT. "DraftDay could not be going into
better hands, and we firmly believe our residual interest will
undergo enormous appreciation under Sportech's leadership,
relationships and access to capital."
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, DraftDay.com. The
Company also offers games of skill through MGTplay.com and social
casino games with SlotChamp™. MGT also launched Daily
Fantasy Legend in partnership with Facebook to become the first
daily fantasy sports platform on social media. 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.