EX-1
from 8-K
1 page
“In Addition, I Believe That Our Medicsight Subsidiary Has Tremendous Potential for Future Growth. We Recently Announced the Positive Results of the Acrin Study, Endorsing the Use of Virtual Colonoscopy, and We Believe That as a Result of This Study, Medicsight’s Virtual Colonoscopy Technology Will See Increased Future Demand.” About MGT Capital Investments, Inc
12/34/56
EX-1
from 8-K
2 pages
Dear Stockholder You May Well Have Seen Some Press Over the Last Two Weeks Relating to the Initial Public Offering (“Ipo”) of Our Subsidiary, Medicsight PLC on the London Stock Exchange’s Alternative Investment Market (“Aim”). the Reasons for the Medicsight PLC Floatation Were: 1. to Raise a Net $60m in Medicsight PLC - Which Means That Medicsight PLC Will Require No Further Funding From MGT; 2. to Use Part of the Ipo Proceeds to Repay the Final Piece of Debt (Approximately $11.5m) Back to MGT; 3. to Leave Sufficient Funds in Medicsight PLC for Working Capital and Business Development. I Am Delighted to Announce That the Ipo Was Completed on Schedule and Medicsight Plc’s Shares Were Listed on the Aim Exchange on June 21 Under the Ticker Symbol “Mdst”. Immediately Prior to the Ipo, MGT Sold Down 11.7m Medicsight PLC Shares in a Private Placement at £1.10, Yielding Net Cash Proceeds of $24m to MGT. This Left MGT With 85m Medicsight PLC Shares Which Will Have a Valuation of £1.10 to £3.50 on a 3 Year Target Range. These Actions Had the Benefit Of: A. Releasing Significant Cash for Future MGT Investments; B. Crystallising a Market Value for the Remaining 85m Medicsight Shares That We Hold; C. Reducing the MGT Holding in Medicsight to a 55% Controlling Stake. Post These Transactions, MGT Could Have a Current and Potential Net Asset Value as Follows: MGT Net Asset Values ($000) Jun 21 3 Year Target Cash and Equivalents $ 42,000 $ 42,000 Medicsight - 85m Shares (£1.10 to £3.50) $ 185,130 $ 589,050 Medicexchange - 22.5m Shares (£1.25 to £2.50) $ 55,600 $ 111,199 Net Asset Value $ 282,730 $ 742,249 Per Share (38.9m Shares) $ 7.27 $ 19.08
12/34/56