In a newly amended filing with the U.S. Securities and Exchange Commission, Iroquois Capital Management has revealed that it has sent a letter to MGT Capital Investments Inc. (NYSEMKT:MGT) to nominate four members for election to the company’s board of directors at the 2014 annual meeting of stockholders. According to the filing, Iroquois holds 929,915 shares of the company, representing 9.99% of common stock outstanding.
Iroquois has nominated John G. Coburn, Neil H. Cohen, Melvin L. Keating, and Joshua Silverman for election to the company’s board. The fund states that it intends to continue to engage in discussions with management and the company’s board regarding the nomination of directors at the 2014 annual meeting and the composition of the board, generally.
In another letter sent by Iroquois to the company’s board in the second week of last month, Joshua Silverman, managing member, states they are deeply troubled by the complete lack of response from either senior management or the board in the four months since they issued a public letter outlining their serious concerns at MGT Capital Investments Inc. (NYSEMKT:MGT), including leadership incompetence, poor governance and lack of oversight, dismal and deteriorating financial and stock price performance, threats of further shareholder dilution, ill-conceived and poorly executed acquisitions, and excessive executive compensation.
“Your indifference to the real and serious issues we have raised, while not surprising, is severely disappointing and indicates your unwillingness to address legitimate shareholder concerns,” Silverman adds.
Further, Silverman states that, as the largest shareholder of the company, they are beyond frustrated with the current performance and direction of the company.
“We have made significant efforts to communicate our concerns to the Board, but unfortunately our appeals for a constructive dialogue have fallen on deaf ears. We are absolutely committed to making sure that the best interests of all shareholders are represented on the Board and doing whatever it takes to bring about real change at MGT for the benefit of all shareholders,” according to Silverman.
In response to Iroquois’ letter nominating four directors, MGT Capital Investments Inc. (NYSEMKT:MGT) said in news release that the nominating committee of its board will review the accuracy of the notice received from Iroquois and consider the Iroquois nominations, as well as qualified individuals who may be submitted by other of the company’s stockholders to serve on the company’s board.
MGT Capital Investments Inc. (NYSEMKT:MGT) and its subsidiaries are engaged in the business of acquiring, developing and monetizing assets in the online and mobile gaming space. The company has a market cap of $8.6 million. Aside from Iroquois Capital Management, Citadel Investment Group, managed by Ken Griffin, holds 31,429 shares.