Company Update (NYSE MKT:MGT): Here’s Why MGT Capital Investments Inc. Shares Skyrocketed 40% Today
MGT Capital Investments Inc. (NYSEMKT:MGT) investors are overwhelmingly excited today after the cybersecurity investment firm disclosed that it may have found a solution for having the 43.8 million shares, which are required to be issued in order to complete the closing of the D-Vasive merger, listed on the NYSE MKT.
MGT Capital shares reacted to the news, skyrocketing nearly 40% to $2.50 intraday.
Specifically, the Company plans to terminate the current Asset Purchase Agreement with D-Vasive. However, the Company has reached tentative agreements with John McAfee and Eric Anderson to execute employment agreements as Chief Executive Officer and Chief Technology Officer, respectively. In addition, the Company has reached a tentative agreement to exclusively license or acquire the Demonsaw source code and technology platform from D-Vasive. MGT believes that such a revised deal structure would be acceptable under NYSE MKT rules.
To further clarify, MGT’s acquisition and commercialization plans of both the Sentinel technology, a network intrusion detector, and the E-Tagged technology, a mobile device tracking platform, remain in place as previously disclose. In addition, the Company’s bitcoin mining operations are also fully owned and operated by MGT. (Original Source)
On the ratings front, Ascendiant Capital analyst Edward Woo initiated coverage with a Buy rating on MGT and a price target of $6.00, in a report issued on August 15. The current price target represents a potential upside of 255.0% from where the stock is currently trading. According to TipRanks.com, Woo has a yearly average return of 13.8%, a 62.5% success rate, and is ranked #429 out of 4184 analysts.
MGT Capital Investments, Inc. engages in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the casino industry. It operates through two reportable segments: Gaming and Intellectual Property.