MGT searches for alternatives as share listing approval denied, causing deep plunge in share price.
The New York Stock Exchange (NYSE) has dealt a blow to MGT Capital Investments by denying approval for MGT shares listing which would complete its merger with John McAfee’s D-Vasive Inc, reports Reuters. The subsequent announcement by the company of a Securities and Exchange Commission (SEC) subpoena caused its shares to plunge leading to a 40% loss over two days.
In May, the mobile gaming company had disclosed its deal with anti-virus software pioneer McAfee and announced the issue of 43.8 million shares for acquisitions of assets from D-Vasive. At that time, MGT shares had jumped 1,200%.
MGT, whose executive chairman is McAfee, says it remains committed to its merger plans and will search for alternatives.
The NYSE did not give reasons for its decision but it has certain rules for companies listing shares for the first time which may also apply to listed firms that merge.
Read more on Reuters.
About the Author(s)
You May Also Like
Guarding the Cloud: Top 5 Cloud Security Hacks and How You Can Avoid Them
April 4, 2024Cybersecurity Strategies for Small and Med Sized Businesses
April 11, 2024Defending Against Today's Threat Landscape with MDR
April 18, 2024Securing Code in the Age of AI
April 24, 2024
Black Hat USA - August 3-8 - Learn More
August 3, 2024Cybersecurity's Hottest New Technologies: What You Need To Know
March 21, 2024Black Hat Asia - April 16-19 - Learn More
April 16, 2024