MGT Capital Investments, Inc. Announces Gaming Patent Acquisition
MGT Capital Investments, Inc. (NYSE-AMEX: MGT.BC), announced today strategic actions to capitalize on opportunities in the business of monetizing intellectual property. After several months of examining how best to maximize the value of its present operations, its cash-rich, debt-free balance sheet, and public stock listing, the Board of Directors has decided to pursue the acquisition of patents and underlying technologies with the intent of commercializing and/or enforcing the economic rights to such inventions. The Company’s first purchase addresses methods of play used in fast-growing popular segments of the slot machine business. The Company will also move to selectively exploit its existing global patent portfolio (12 issued, 19 pending) relating to the algorithmic calculation of anomalies in medical images for use in cancer detection.
To set the foundation of this strategy, MGT announced today that it has agreed to acquire a majority interest in MGT Gaming, Inc., which has entered into a binding agreement to acquire U.S. Patent #7,892,088, entitled “Gaming Device Having a Second Separate Bonusing Event.” The invention specifically relates to gaming systems linked to an interactive sign, and includes all filed continuation patents. The United States Patent and Trademark Office issued this patent on February 22, 2011; the corresponding patent application was filed on October 18, 2001.
The patent’s inventors will retain a significant minority stake in MGT Gaming; full terms will be disclosed upon the closing of the transactions contemplated in the agreement, which is subject to customary closing conditions. Steven Brandstetter, an inventor, stated, “I am ecstatic that I may finally receive compensation for my foresight and endless hard work. MGT will provide the necessary resources, including access to leading patent enforcement counsel, to pursue claims against the slot machine manufacturers and casino operators that I believe have misappropriated my idea willfully or otherwise.”
According to Robert Ladd, the Company’s President and Chief Executive Officer, “The field of intellectual property presents a rich landscape of prospective acquisition targets with outstanding risk/reward characteristics. We have identified several such prospects, and in the coming year, we hope to have more disclosures in addition to today’s news.” Summarizing today’s events, Mr. Ladd concluded, “As Chief Executive and the largest stockholder of MGT, I am very optimistic about our future direction and look forward to updating shareholders at our annual meeting, which is planned for May 30, 2012.”
About MGT Capital Investments, Inc.
MGT and its subsidiaries are engaged in the business of monetizing intellectual property.
The Company’s majority-owned subsidiary, Medicsight, Ltd is a medical technology company with operations in imaging software and hardware devices, including computer-aided detection software used to assist radiologists with detection of colorectal polyps. The company's software has regulatory approvals including CE Mark and U. S. FDA clearance.
Forward Looking Statements
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." MGT's financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. 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.
Robert Ladd, 914-630-7430
President and Chief Executive Officer
Robert Traversa, 914-630-7431
Chief Financial Officer
Craig Allison, 914-630-7429
Senior Vice President, Strategy and Corporate Communications
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