logo
logo

John McAfee's mysterious new company is the hottest stock in America right now

avatar
Milagros Lester
img

Shares of the small tech company MGT Capital Investments were up more than 37% on Tuesday at $4.08 per share.With over 108 million shares traded, it was the most active stock, ahead of Bank of America.Tuesday was another day in a stream of strong upward moves for the stock after the company announced on May 9 that it was naming John McAfee, founder of antivirus firm McAfee Security, as CEO and re-branding the firm John McAfee Global Technologies Inc.The surge followed the McAfee announcement, which included a sudden shift in the business from online gaming to cybersecurity.MGT acquired D-Vasive, a company that produces software that protects cellphones, on May 9.

Before the shift, the company focused on online games such as slots simulator SlotChamp and had a 10% stake in daily fantasy site DraftDay.com.The firm had no holdings regarding cybersecurity before the acquisition, according to its most recent annual filing.Here's what we know about the abrupt pivot so far:September 8, 2015: MGT sells all but 11% of its stake in DraftDay.com, according to its annual report.April 14: After delaying its annual report from March 31, MGT files its report, saying it has $359,000 in cash on hand.

The report does say that following the sale of DraftDay, the firm is "considering all methods to create value for shareholders, including potential mergers, spin-offs, distributions and other strategic actions.

Brauser has been sued numerous times for fraud involving small, publicly listed firms, though some of those allegations have been dismissed.

The most recent was dismissed in September 2015, for the company IDI Inc. Brauser was also CEO of an email-marketing company, Naviant, which was acquired and eventually sued by credit agency Equifax after the firm accused the shareholder sellers of fraud.

According to that filing, Silverman and his firm no longer have any representation on the board.May 9: McAfee is named chairman and CEO, and the company buys Wyoming-based cybersecurity firm D-Vasive for $300,000 in cash and 4,760,000 in shares of MGT.

collect
0
avatar
Milagros Lester
guide
Zupyak is a free content platform for publishing and discovering stories, software and startups.