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MGT Capital Investments, Inc. Provides Update on Recent Developments
Date:8/22/2011

NEW YORK, Aug. 22, 2011 /PRNewswire/ -- MGT Capital Investments, Inc. ("MGT", "we", or "the Company") (AMEX: MGT), a holding company engaged in the medical imaging industry, is providing the following update on recent developments at the Company and its majority-owned subsidiary Medicsight PLC ("Medicsight" or "MDST").  In addition, MGT is reporting a summary of its recently filed financial results (via SEC Form 10-Q on August 15, 2011) for the period ending June 30, 2011.

Highlights:

  • On July 8, 2011, both the Company and Medicsight announced the initiation of internal investigations through Special Committees of the Boards of Directors relating to the potential misappropriation and/or misdirection of corporate funds.  Based upon the substantially complete results of the investigation, the Company has concluded that no adjustments or restatement of prior issued financial statements is required.  Although the investigation remains on-going, the Board is confident that the Company's financial statements will not require a material restatement as a result of any additional irregularities discovered in the future.  Furthermore, the Company intends to seek all possible methods of recovery or restitution where appropriate and where the cost of doing so will not be greater than the expected outcome.

  • In late July 2011, Medicsight was informed by the Japanese Ministry of Health, Labor and Welfare ("MHLW") that several statistical data errors were encountered in their review of the application for approval of its MedicRead software for use in CT Colonography procedures.  Following informal guidance from MHLW, the Company has decided to withdraw the current submission and is assessing the next course of action.  In the meantime, the Board of Directors of Me
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SOURCE MGT Capital Investments, Inc.
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