Shares of MGT Capital Investments, Inc. (OTCMKTS: MGTI) soared 19.05% on Friday, March 3, 2017. The company made headlines when they announced closure to some recent merger activity, in which they acquired 46% of Demonsaw LLC. A company that John McAfee believes could eventually be “Internet 2.0”
Now, according to OTC Markets, the average daily trading volume in MGT Capital Investments, Inc. (OTCMKTS: MGTI) over the last 30 days has been approximately 430K shares. However, over 1.7M shares traded on Friday. The stock price closed at $1.25, up $0.20 on the session.
MGT Capital Investments, Inc. (OTCMKTS:MGTI) has seen it’s stock price surge this year, posting gains of greater than 70%. Now, as of March 3, 2017 the company had a market cap of $38.46M . In addition, there are approximately 23.8m shares floating as of October 28, 2016. The stock price has been trading in a range between $0.215 and $5.58 over the last 52 weeks.
In November of 2016, they released a filing to the SEC. Included in that report were details on John McAfee’s association with the company.
Contingent upon the closing conditions to the D-Vasive APA, the Company agreed to enter into an employment agreement with John McAfee pursuant to which Mr. McAfee will join the Company as Executive Chairman of the Board of Directors and Chief Executive Officer of the Company at the closing of the transaction contemplated in the D-Vasive APA.
It is currently contemplated that Mr. McAfee will have a base annual salary of $1.00 per day; payable at such times as the Company customarily pays is other senior level employees.
In addition, Mr. McAfee will be granted Executive options (the “Options”) to purchase an aggregate of six million (6,000,000) shares of the Company’s common stock (the “Option Shares”), which shall be exercisable for a period of five (5) years as follows:
- options to purchase 1,000,000 shares of the Company’s Common Stock at a per–share price of the higher of $0.25 or the closing price of the Company’s Common Stock as quoted on the OTC Pink as of the date of the full execution hereof;
- options to purchase 2,000,000 shares of the Company’s Common Stock at a purchase price of $0.50 per share; and
- options to purchase 3,000,000 shares of the Company’s Common Stock at a purchase price of $1.00 per share.
Clearly, the better stock performs… the better compensated Mr. McAfee will be. Who knows what’s up his sleeve, he has lived an interesting life to say the very least. From cybersecurity pioneer to presidential hopeful, and let’s not forget he was once accused of plotting to murder his neighbor when he was living in South America.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. (MGTI) is in the process of acquiring and developing a diverse portfolio of cyber security technologies. With industry pioneer John McAfee at its helm, MGT is positioned to address various cyber threats through advanced protection technologies for mobile and personal tech devices, as well as corporate networks.
Also as part of its corporate efforts in secure technologies, MGT is growing its capacity in mining Bitcoin. Currently at 5.0 PH/s, the Company’s facility in WA state produces about 100 Bitcoins per month, ranking it as one of the largest U.S. based Bitcoin miners. Further, MGT is in active discussions with financial partners to grow Bitcoin output materially.
Lastly, MGT stockholders have voted to change the corporate name of MGT to “John McAfee Global Technologies, Inc.” Following a dispute over ownership and permitted usage of the name McAfee, The Company and Intel have agreed to a mediation process to avoid unnecessary legal costs.
Most Recent Headline
MGT Announces Closure to Recent Merger Activity
DURHAM, N.C., March 3, 2017 /PRNewswire/ — MGT Capital Investments, Inc. (MGTI) today announced that it has acquired a 46% equity interest in Demonsaw LLC, led by Eric (“Eijah”) Anderson. Today’s action concludes events begun in May 2016 and allows the Company to reap the upside of promising technology with very minimal dilution. By issuing 2.0 million new shares rather than the 43.8 million originally approved, the board of directors has maintained the Company’s vision, while providing maximum benefit to existing and future shareholders.
As previously disclosed, MGT had entered into a revised asset purchase agreement to acquire D-Vasive, Inc., a maker of mobile communications privacy applications. As contemplated in this agreement, D-Vasive would have acquired Demonsaw, with MGT owning both companies. Despite stockholder approval in September, the entire transaction terminated because the critical condition of closing – approval by NYSE MKT – was not met. In recent months, MGT has tried without success to reach agreement among the various stakeholders of D-Vasive and Demonsaw with renegotiated terms.
Notwithstanding the termination of that agreement, the MGT has been successful in expanding its footprint in cybersecurity technologies through the acquisitions of assets from E-Tagged and Cyberdonix, Inc., as well by hiring several talented programmers. Very importantly, the Company has also secured the insight and vision of cybersecurity pioneer John McAfee via an employment agreement. In addition, the Company presently operates a large Bitcoin mining facility in Washington state with plans to rapidly scale up this business.
With today’s announcement, MGT has joined forces with a “future visionary” Eijah who has completed important work on his Demonsaw platform, as well as other initiatives. John McAfee, Executive Chairman of MGT stated, “Demonsaw is developing what might ultimately become Internet 2.0 and MGT will participate in this exciting market. We look forward to sharing in the success of Eijah’s forward thinking leadership.”
Summarizing the transaction, Eijah concluded, “There is no humanity without the fundamental right to privacy. The Cloud is a lie and it’s time to give back control of data to businesses and individuals. The cybersecurity platforms that my company is creating are laying the foundation for the future of the Internet.”
MGTI seem to be making a large bet on John McAfee, the 71 year old, cyber security pioneer is a wild card to say the least. Is this company just another game for McAfee or is MGTI for real? Sign up to our newsletter below, we’ll make sure to update you on what happens next to MGTI.