HARRISON, N.Y., April 21, 2016 /PRNewswire/ -- MGT Capital
Investments, Inc. (NYSE MKT: MGT) announced that as previously
disclosed in its Annual Report on Form 10-K for the year ended
December 31, 2015, filed on
April 14, 2016 with the Securities
and Exchange Commission, the audited financial statements contained
a going concern qualification paragraph in the audit opinion from
its independent registered public accounting firm. See further
discussion in Note 2 to the Company's consolidated financial
statements included in the Company's Annual Report on Form
10-K. The Company has previously disclosed this qualification
with respect to its auditor's opinion beginning with its form 10Q
for the quarter ended June 30, 2015,
filed on August 14, 2015 with the
Securities and Exchange Commission.
Also as previously reported, in the second half of 2015 MGT
closed the sale of its daily fantasy sports business and reduced
its corporate cost structure. As a result, the Company expects its
cash loss to be materially lower in 2016 versus the prior year. MGT
currently has 18.1 million common shares outstanding, carries zero
debt, and has a stated book value of $6.0
million.
The board of directors continues to consider all methods to
create value for shareholders, including potential mergers,
spin-offs, distributions and other strategic actions.
This announcement is made pursuant to NYSE MKT Company Guide
Section 610(b), which requires public announcement of the receipt
of an audit opinion containing a going concern paragraph. This
announcement does not represent any change or amendment to the
Company's consolidated financial statements or to its Annual Report
on Form 10-K for the year ended December 31,
2015.
About MGT Capital Investments, Inc.
MGT Capital and
its subsidiaries own and operate social and real money gaming sites
online and in the mobile space, including MGTplay.com and
SlotChamp™. In addition, the Company owns
intellectual property relating to slot machines and has asserted
its claims via patent infringement lawsuits. MGT also has
ownership stakes in DraftDay.com, a top daily fantasy sports
wagering platform and DraftDay Fantasy Sports, Inc. operator of an
online entertainment marketing and rewards platform..
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.