MGT Capital agrees to acquire Demonsaw technology, assets

MGT Capital Investments, Inc . (NYSE MKT: MGT) has agreed to acquire certain technology and assets from Demonsaw LLC , a provider of a secure and anonymous file sharing software platform, the company said.

Major terms of the deal include the payment to Demonsaw LLC members of 20.0 million restricted shares of MGT common stock. The proposed share issuance is expected to amount to approximately 28 percent of the company´s common stock on a pro-forma fully diluted basis at closing, inclusive of shares of common stock to be issued in connection with the company´s previously announced transaction with D-Vasive, Inc.

Using multiple layers of encryption (both symmetric and asymmetric), Demonsaw offers users full control of data and also offers private router services . Demonsaw is a fully decentralized, mesh-based network that does not use P2P, providing protection of IP addresses.

Closing of the acquisition is contingent on conditions, including approval by MGT´s stockholders.

MGT and its subsidiaries are principally engaged in the business of acquiring, developing and monetizing intellectual property assets. MGT´s portfolio currently includes social casino and gaming platforms, and ownership stakes in DraftDay.com, a top daily fantasy sports wagering platform and DraftDay Fantasy Sports, Inc. operator of an online entertainment marketing and rewards platform.