MGT Capital To Buy Secure File Sharing Technology

(RTTNews) - MGT Capital Investments Inc. (MGT) announced that it has entered into a definitive asset purchase agreement to acquire certain technology and assets from Demonsaw LLC, a provider of a secure and anonymous file sharing software platform. 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. Demonsaw is available in 32-bit and 64-bit versions for Windows, Apple OSX, Android, Raspberry Pi and Ubuntu.

In conjunction with the anticipated acquisition, MGT also announced the proposed appointment of Eric J. Anderson as Chief Technology Officer upon closing of the transaction. Anderson, who is well known as "Eijah" in the hacker community, is the founder of Demonsaw.

Closing of the acquisition is contingent on customary conditions including approval by MGT's stockholders. 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% 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.