MGT Capital Investments Inc. (NYSEMKT:MGT) has announced the acquisition of certain assets and technology from D-Vasive Inc. As per the filing with the SEC, MGT disclosed that the assets are an integral part of D-Vasive’s business. The move comes at a time when an increasing number of mobile applications demand access from users, to access their contacts, location and permissions to turn their cameras and microphones on and off. D-Vasive’s unique technology allows the users to control the internal hardware of their devices, thereby restricting unnecessary access by such applications.
The two companies have agreed to the payment terms of the acquisition, to be paid in $300,000 in cash, 4.7 million unregistered shares of MGT common stock and 19.04 million registered shares of the common stock. The unregistered shares, however, would be held in escrow, until pending satisfaction of warranties and representation in the asset purchase agreement. It should be noted here that D-Vasive’s mobile application has not been launched as yet. The company had, however, announced that it would be targeting Windows and Android phones first, before moving forward for an iOS launch.
The announcement of the acquisition was also accompanied by the appointment of John McAfee as the new CEO and Executive Chairman of the company. Although Mr. McAfee had sold his antivirus company to Intel, for $7.6 billion, he is still actively involved in the protection of individual freedom and privacy of internet users. Regarding the acquisition of D-Vasive assets, Mr. McAfee stated that it would help MGT become a successful and major player in the internet security space. He also hinted at utilizing the resources of MGT Capital to hire the best minds in the business. In light of recent developments, MGT Capital is also planning to change the company’s corporate name to John McAfee Global Technologies Inc.
MGT Capital Investments Inc. (NYSEMKT:MGT) completed the May 10 trading session, with a 47.96% increase in its share value, to reach a close at $0.725, after having a trade volume of 18.14 million.