DURHAM, N.C., Dec. 15, 2017 /PRNewswire/ -- MGT Capital Investments, Inc. (OTCQB: MGTI) announced today that it has executed a series of transactions that put the Company in a debt-free and cash-rich position as it exits 2017. Specifically, investors holding a total of $4.6 million in convertible notes have exchanged their debt for equity. In addition, the Company sold two million newly issued restricted shares for a total of $8.0 million, or $4.00 per share. The purchasers also received warrants to acquire an equal number of MGT shares at a price of $4.50 per share.
Robert Ladd, MGT's Chief Executive Officer provided the following commentary on these events. "The returns in our bitcoin mining operations have never been better, and the board has decided to enter into agreements that position the Company for even greater expansion with less risk. This strengthened balance sheet, combined with the projected financial results of over 5,000 Bitmain S-9 mining rigs in operation during the first quarter of 2018, will provide MGT with tremendous flexibility going forward. These measures also move us more swiftly towards the goal of up-listing our common stock," concluded Mr. Ladd.
About MGT Capital Investments, Inc.
With facilities in WA state, MGT Capital Investments, Inc. (OTCQB: MGTI) ranks as one of the largest U.S. based Bitcoin miners. Further, the Company continues to focus on an expansion model to grow its crypto assets materially.
The Company is also developing a portfolio of cyber security technologies, with industry pioneer John McAfee as its visionary leader, creating advanced protection technologies for mobile and personal tech devices, as well as corporate networks. The Company's first product, Sentinel, an enterprise class network intrusion detector was released in October 2017. The Company also has entered into a joint venture with Nordic IT to develop and market a mobile phone with extensive privacy and anti-hacking features. The Privacy Phone has a tentative release date of February 2018.
For more information on the Company, please visit: http://www.mgtci.com
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." 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.