HARRISON, N.Y., Oct. 20, 2016 /PRNewswire/ -- MGT Capital
Investments, Inc. (OTC: MGTI) announced that at 4:23 p.m. EDT on October
19, 2016, the Company received a letter from the New York
Stock Exchange ("NYSE" or the "Exchange") stating that the staff of
NYSE Regulation has determined to commence proceedings to delist
the Company's common stock. NYSE Regulation cited Section 1002(c)
of the NYSE MKT Company Guide as justification for the action. The
cited section is meant to apply when a company has sold or
otherwise disposed of its principal operating assets, or has ceased
to be an operating company.
The Company has the right to a review, by a committee of the
Board of Directors of the Exchange, of the NYSE staff's
determination to delist the common stock. The NYSE MKT will apply
to the Securities and Exchange Commission to delist the Company's
common stock upon completion of all applicable procedures,
including any appeal by the Company of the NYSE Regulation staff's
decision.
MGT's common stock was also suspended from trading on NYSE MKT
by the Exchange with no warning or apparent appeal process. We
expect the Company's stock to begin trading over the counter under
the ticker symbol "MGTI" beginning today, October 20, 2016.
The Company knows of no facts or circumstances that would lead
NYSE Regulation to reach its unilateral decision. The fact pattern
actually produces the opposite conclusion: Notwithstanding the NYSE
MKT's (also unilateral) decision to prevent the issuance of shares
in connection with MGT's stockholder approved acquisition of
D-Vasive and Demonsaw, MGT is indeed an operating company using any
definition of those words. Moreover, the Company has not sold or
disposed of its principal operating assets.
It is the Company's position that the facts dramatically
contradict the Exchange's decision. In recent months, MGT has
acquired operating assets including two cybersecurity devices and
bitcoin mining equipment and infrastructure. It currently has 15
employees and consultants, a newly signed 3-year lease for a tech
center in Durham, NC, has
announced the commercial release of its first cybersecurity
product, and is currently a top U.S. producer of bitcoins. The
bitcoin operations generate over $50,000 per month in gross profit, offsetting the
$300,000 per month costs of
operations. The company's preliminary balance sheet for
September 30, 2016 consists of over
$2.1 million in cash plus
approximately $750,000 of marketable
securities.
The Company board of directors is comprised of experienced and
intelligent experts in technology and Wall Street. These directors
are also entrepreneurs, creating economic value and pioneering
entire industries. Additionally, MGT has assembled several advisory
boards, bringing together respected experts in various fields
relating to bitcoin and cybersecurity. The Company's leadership
team gets weekly requests to keynote top industry conferences on a
global basis. The Company has over 16,000 stockholders in over 20
countries.
"In our opinion, the conclusions of NYSE MKT are not only wrong
and unfair, but insulting. Furthermore, this regulatory standard
appears to be applied arbitrarily when comparing MGT to other
issuers, or even to MGT itself over the years," stated John McAfee, Executive Chairman of MGT
Capital.
"We urge stockholders to remember that in no way will our
adherence to top corporate governance practices change as a result
of the NYSE's action. These standards include having a majority of
independent directors on the board, maintaining timely filings for
SEC disclosures, and having independent audits of our financial
results," continued Mr. McAfee.
"Also, our approach and desire to create a leading cybersecurity
company will be unaffected by the delisting proceedings. The
Company has not yet decided whether it will appeal the NYSE ruling;
and MGT currently has a listing application in process at NASDAQ,
as well as the OTCQX, although there can be no assurance of
acceptance or timing," concluded Mr. McAfee.
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.
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.
Investor Contact
Garth
Russell
Managing Director
KCSA Strategic Communications
grussell@kcsa.com
212.896.1250
Media Contact
Tiffany
Madison
Director of Corporate Communications
MGT Capital Investments, Inc.
tmadison@mgtci.com
469.236.9569
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SOURCE MGT Capital Investments, Inc.