HARRISON, N.Y.--(BUSINESS WIRE)--MGT Capital Investments, Inc. (NYSE MKT: MGT), announced today it retained Munich Innovation Group to license or sell MGT’s portfolio of international medical imaging patents associated with its wholly-owned legacy subsidiary, Medicsight, Inc. The divestiture of the Medicsight patents would conclude MGT’s plan to rationalize this subsidiary. The Company has not entered into any definitive agreements with respect to the sale of the patents.
Commenting on the announcement, Robert Ladd, MGT’s President and CEO, stated, “After review, we have determined that these imaging patents do not fit with MGT’s current business model. By partnering with Munich Innovation, a leading service provider for intellectual property monetization, we can better focus on the gaming patent infringement suit we filed in November 2012, as well as continuing to explore avenues to create and enhance shareholder value.”
As reported in the Company’s Current Report Form 8-K dated December 10, 2012, MGT has a debt-free balance sheet with stockholders’ equity of approximately $6.8 million. As it enters 2013, the Company has approximately $5.5 million of cash, 3.2 million common shares outstanding, plus 1.4 million preferred shares (convertible into common stock on a one-for-one basis).
About MGT Capital Investments, Inc.
MGT and its subsidiaries are engaged in the business of acquiring and monetizing intellectual property rights.
MGT Gaming, Inc., a majority-owned subsidiary, owns U. S. Patent No. 7,892,088 relating to casino gaming systems. In November 2012, MGT Gaming filed a patent infringement suit against Caesars Entertainment Corporation (NASDAQ GS: CZR), MGM Resorts International, Inc. (NYSE: MGM), WMS Gaming - a subsidiary of WMS Industries, Inc. (NYSE: WMS), Penn National Gaming, Inc. (NASDAQ GS: PENN), and Aruze Gaming America, Inc.
In addition, the Company owns Medicsight, Inc., a medical technology company with patent ownership, as well as operations in imaging software and hardware devices. Medicsight’s computer-aided detection software assists radiologists with detection of colorectal polyps, and has received regulatory approvals including CE Mark and U. S. FDA clearance.
About Munich Innovation Group GmbH
Munich Innovation Group GmbH is a leading service provider for intellectual property monetization and research on a global scale. Clients include publicly listed high-tech corporates, privately held companies, independent inventors, academic institutions and investors. The company offers IP investment banking services in the fields of patent commercialization (brokerage, product innovation), technology-driven M&A, and strategic advisory services.
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.