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MGT Capital Investments
, announced today the closing
of two separate equity financings, each primarily subscribed by various
institutional investors, resulting in gross proceeds to the Company of $5.9
million. As a result of these transactions, MGT is now debt-free and has
approximately $7.0 million in cash.
Commenting on the announcement, Robert Ladd, CEO of MGT, stated, "Having
substantially strengthened our balance sheet, the company is now well
positioned to both begin aggressive enforcement of its current intellectual
property rights against possible infringers, as well as intensify the efforts
to expand and diversify our portfolio of monetizable IP. We see a substantial
business opportunity by partnering with inventors and companies who lack
capital and/or expertise to get properly compensated for their existing IP and
patent ownership, and we have identified several compelling targets.”
The $5.9 million of financing was comprised of $4.5 million from the sale of
Series A Convertible Preferred Shares (which included Warrants to purchase
shares of MGT common stock), and $1.4 million from the sale of 453,000 shares
of MGT Common Stock at $3.01 per share under its current S-3 Registration
Statement declared effective by the SEC on September 25, 2012.
The Series A Preferred Shares are convertible into the Company's common stock
at a fixed price of $3.26 per share and carry a 6% dividend. The associated
Warrants have a five-year life and are exercisable at $3.85 per MGT share.
The Preferred share offering was made in reliance upon the exemption from
securities registration afforded by Section 4(2) of the Securities Act of
1933, as amended, and Rule 506 of Regulation D, as promulgated by the United
States Securities and Exchange Commission under the 1933 Act.
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