MGT Capital Shares Volatile After News Of Terminated D-Vasive Agreement

MGT Capital Investments Inc. (NYSE: MGT) is a company that is engaged in the business of acquiring, developing and monetizing assets in the online and mobile security space, soared higher on Tuesday after the company provided an update to a pending acquisition.

MGT Capital previously attempted to acquire John McAfee's company called D-Vasive. However, MGT Capital failed to gain approval from the New York Stock Exchange to list 43.8 million shares that were part of the acquisition plan.

Related Link: MGT Capital Issues Update On D-Vasive Acquisition

Under a new structure, MGT Capital terminated its asset purchase agreement and will now license D-Vasive's technology.

McAfee will also become the CEO of MGT Capital as previously announced as part of the initial proposed merger agreement.

MGT Capital argued that with McAfee at its helm, the company is "positioned to address various cyber threats through advanced protection technologies for mobile and personal tech devices."

Shares of MGT Capital opened for trading on Tuesday at $1.77 and its late-afternoon announcement sent shares soaring as high as $2.57 before closing the day at $2.50.

After a few minutes of trading on Wednesday, shares of MGT Capital were lower by nearly 7 percent at $2.35, and at last check, MGT was down 12 percent at $2.20.

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