MGT Capital Investments Inc. (MGTI)

[Werbe]

Hmm AS raise is much but needed due 2 Equity purchase agreement tied 2 S3. They have such a large mining inventory.. When BTC recovers, theyll have major major assets.

Says they are paying off notes, which is good IMO.

As of September 30, 2018, MGT owned and operated approximately 500 miners located in a leased facility in Quincy, Washington. The Company also owns 4,200 miners which are in the process of being moved to a leased facility in Colorado. In addition, the Company operates about 2,100 miners pursuant to management agreements, which are also in the process of being moved to the leased facility in Colorado. All miners owned or managed by MGT are S9 Antminers sold by Bitmain Technologies LTD. In addition to the S9 Antminers, the Company owns 50 custom designed GPU-based Ethereum mining rigs. During the nine months ended September 30, 2018, the Company mined 230.7 Bitcoin for total revenue of $1,934. In addition, the miners the Company operates pursuant to the management agreements mined 183.6 Bitcoin during the same period.

On August 31, 2018, the Company entered into a note purchase agreement with an accredited investor, pursuant to which the Company issued an unsecured promissory note in the amount of $1,062 (the “August 2018 Note”) for consideration of $1,000. The outstanding balance of the August 2018 Note is due in full on February 28, 2019. The August 2018 Note bears interest at a rate of 8% per annum. Subject to the terms and conditions set forth in the August 2018 Note, the Company may prepay all or any portion of the outstanding balance at any time without pre-payment penalty. Upon the occurrence of an event of default, the interest rate on the August 2018 Note shall immediately increase to 24% per annum.

On August 30, 2018, the Company and L2 Capital, LLC (“L2 Capital”), a Kansas limited liability company, entered into an equity purchase agreement (the “Equity Purchase Agreement”), pursuant to which the Company may issue and sell to L2 Capital from time to time up to $35,000 of the Company’s common stock that is registered with the SEC under a registration statement on a Form S–3. Pursuant to the Equity Purchase Agreement, the Company may require L2 Capital to purchase shares of common stock that is equal to the lesser of $500 and 200% of the average trading volume of the common stock in the ten prior trading days, upon the Company’s delivery of a put notice to L2 Capital. L2 Capital shall purchase such number of shares of common stock at a per share price that equals to the lowest volume weighted average trading price of the common stock during the five prior trading days multiplied by 93.5%.

During the three and nine months ended September 30, 2018, the Company issued 3,950,000 shares of its common stock in exchange for $731. Of that amount, $366 was applied directly as payment against the August 2018 Note.

During the nine months ended September 30, 2018, the Company charged $160 against the Equity Purchase Agreement related to deferred financing costs from its previous equity purchase agreement, which was terminated concurrent to the entrance into the Equity Purchase Agreement.