MGT Capital Investments, Inc. (OTCMKTS:MGTI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On February 17, 2017, MGT Capital Investments, Inc. (the Company)
entered into a Securities Purchase Agreement (the Purchase
Agreement) with an accredited investor (the Investor) relating to
the issuance and sale of 1,000,000 shares of the Companys common
stock, par value $0.001 per share (the Shares) at a purchase
price of $0.40 per Share. In addition, for every Share purchased,
the Investor shall receive detachable warrants, as follows (i)
one Series A Warrant; (ii) one Series B Warrant; and (iii) one
Series C Warrant (collectively the Warrants).
Each Series A Warrant is exercisable for one (1) Share, for a
period of three (3) years at a price of $0.50 per Share. Each
Series B Warrant is exercisable for one (1) Share, for a period
of three (3) years at a price of $0.75 per Share, and each Series
C Warrant is exercisable is exercisable for one (1) Share, for a
period of three (3) years at a price of $1.00 per Share.
The gross proceeds from the Purchase Agreement are $400,000, and
the Company received proceeds of $200,000 on February 17, 2017.
The Company expects to receive the remaining $200,000 on or
before March 15, 2017.
The Purchase Agreement also contains other customary
representations, warranties and agreements by the Company and the
Investor. The representations, warranties and covenants contained
in the Purchase Agreement were made only for purposes of such
agreement and as of specific dates, were solely for the benefit
of the parties to such agreement and may be subject to
limitations agreed upon by the contracting parties.
The foregoing descriptions of the Purchase Agreement and the
Warrants are not complete and are qualified in their entirety by
reference to the full text of the Form of Purchase Agreement
filed as Exhibit 10.1, the Form of Series A Warrant filed as
Exhibit 10.2, the Form of Series B Warrant filed as Exhibit 10.3,
and the Form of Series C Warrant filed as Exhibit 10.4 to this
report and are incorporated by reference herein.
Item 3.02 Unregistered Sales of Equity
Securities
On February 17, 2017, the Company issued the Shares and the
Warrants, in exchange for aggregate gross proceeds of $400,000.
The details of this transaction are described in Item 1.01, which
is incorporated by reference, in its entirety, into this Item
3.02.
The issuance and sale of the Shares and the Warrants was made to
an exemption from registration under Section 4(a)(2) of the
Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 10.1 | Form of Securities Purchase Agreement | |
| 10.2 | Form of Series A Warrant | |
| 10.3 | Form of Series B Warrant | |
| 10.4 | Form of Series C Warrant |
About MGT Capital Investments, Inc. (OTCMKTS:MGTI)
MGT Capital Investments, Inc. (MGT), through its subsidiaries, is engaged in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the social casino industry. The Company operates through two segments: Gaming and Intellectual Property. MGT’s gaming portfolio includes a social casino platform Slot Champ. It also includes minority stakes in the skill-based gaming platform MGT Play and fantasy sports operator DraftDay Gaming Group, Inc. (DDGG). The Company’s subsidiaries include Medicsight, Inc. (Medicsight), MGT Sports, Inc. (MGT Sports), MGT Studios, Inc. (MGT Studios) and MGT Gaming, Inc. (MGT Gaming). Medicsight owns medical imaging software and has designed an automated carbon dioxide insufflation device on which the Company receives royalties from an international distributor. The software is designed to detect colorectal polyps during a virtual colonoscopy performed using computed tomography. MGT Capital Investments, Inc. (OTCMKTS:MGTI) Recent Trading Information
MGT Capital Investments, Inc. (OTCMKTS:MGTI) closed its last trading session down -0.100 at 0.770 with 98,733 shares trading hands.