MGT Capital Investments Announces Rights Offering and Files Registration Statement
MGT Capital Investments, Inc. (NYSE: MGT), announces that it filed a registration statement on Form S-1 with the Securities and Exchange Commission on October 3, 2011 in connection with a direct rights offering in which Company stockholders will receive non-transferable and non-tradable rights to purchase up to 31,640,472 shares of Company common stock. The Company's Board of Directors approved the Rights Offering on October 3, 2011.
Each whole basic subscription privilege will entitle a holder to purchase 0.8 shares of our common stock for each (1) share owned as of the record date at a subscription price to be determined by the Board. The Company will set the record date in accordance with NYSE Amex LLC guidelines and in conjunction with the date of effectiveness of the Registration Statement. Company stockholders who exercise their Rights in full may also exercise an "oversubscription privilege" to purchase, on a pro rata basis, a portion of the unsubscribed shares subject to certain limitations.
The Rights Offering is expected to commence after the Registration Statement has been declared effective by the SEC. The offering period is expected to be set at no less than 14 days and no more than 45 days, subject to extension.
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