NEW YORK, April 2 /PRNewswire-FirstCall/ -- MGT Capital Investments, Inc. (NYSE AMEX: MGT), a holding company, today provided an update on strategic events and its business strategy going forward.
Mr. Tim Paterson-Brown, Chairman and Chief Executive Officer of MGT Capital Investments noted that "2009 has been a difficult year for MGT and its operating companies. Following a detailed strategic review we have reduced our ongoing operating cost base and have disposed of our investments in Medicexchange, XShares, Hipcricket and Eurindia and we are focussing our cash and resources on our investment holdings in Medicsight PLC and Moneygate Group Limited.
Medicsight PLC, which is traded on the AIM market of the London Stock Exchange (AIM: MDST), in which we hold 86 million shares (representing 55% of the issued share capital), is a leading developer of computer-aided detection (CAD) and image analysis software for the medical imaging market. Medicsight recently announced its year end results and noted its healthy cash position. In addition it noted that it is working with regulatory authorities in the United States (the FDA) and Japan (the MHLW) to have its ColonCAD products approved for clinical use in both jurisdictions. Medicsight received a second AI letter from the FDA in January 2010, and is confident in responding within the required timeframe. The company recently signed a global distribution agreement with MEDRAD Inc., to distribute the company's new MedicCO2LON insufflator product.
Moneygate Group Limited, a privately held company of which we hold 49% of the issued share capital is a UK based financial services business which provides retail customers with instant access to a whole-of-market range of financial products, a nationwide network of independent financial advisers and a strong back office team of planners, researchers and customer management staff.
At December 31, 2009, MGT had a consolidated cash balance of $22.2 Million, which together with the proceeds from the disposal of Medicexchange, XShares, Hipcricket and Eurindia, and a reduced operating cost base, a reduction of 42% on 2008 and further initiatives implemented in 2010, means that the MGT group has a strong balance sheet and cash position.
In conjunction with our review, Drs Peter Fielding and Alan Miller have resigned from the board. Both have been independent directors over the previous 7 years and I thank them for their dedication and advice they have given.
These strategic decisions will allow us to focus our efforts on delivering shareholder value from our investments in Medicsight and Moneygate. As both businesses develop and move to profitability over the next 12-36 months we expect to see this improved."
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. is a holding company. The Company has two holdings, Medicsight PLC and Moneygate Group Limited.
Medicsight PLC (AIM: MDST) is a leading developer of computer-aided detection (CAD) and image analysis software for the medical imaging market. The CAD software automatically highlights suspicious areas on computerized tomography (CT) scans of the colon and lung, helping radiologists to identify, measure and analyze potential disease and early indicators of disease. Medicsight's CAD software has been validated using one of the world's largest and most population diverse databases of verified patient CT scan data. Medicsight's ColonCAD((TM)) and LungCAD((TM)) software products are seamlessly integrated with the advanced 3D visualization workstations of several industry-leading imaging equipment partners.
Moneygate Group Limited is a UK based financial services business which provides retail customers with instant access to a whole-of-market range of financial products, a nationwide network of independent financial advisers and a strong back office team of planners, researchers and customer management staff. Unlike competitors, the company has a unique hybrid business model, which combines the traditional national IFA network with a strong technology platform, allowing greater control over customer acquisition, significantly lower overheads, accelerated business growth, sustainable recurring income streams and adds significant capital value to the business, as well as creating a unique proposition. The company has two key brands, ClearMoney and MoneyTarget.
Additional information can be found at http://www.mgtci.com/.
All forward-looking statements are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in company filings with the Securities and Exchange Commission.
MGT Capital Investments, Inc.
CONTACT: Investor & Media enquiries: Allan Rowley, 44-20-7605-7995,
Allan.Rowley@mgtci.com
Web Site: http://www.mgtci.com/
