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‘/>”/>
