Internet colourful character John McAfee’s company MGT Capital Investments saw its shares drop 21 percent after the New York Stock Exchange denied approval of the listing of shares for a planned merger with anti-spyware company D-Vasive.
This means that in the last three days or so MGT shares have lost half their value. Most of this is because the outfit has received a subpoena from the US Securities and Exchange Commission.
This is an amazing turnaround. In May, MGT surged more than 1,200 percent after the mobile gaming company announced it would transform into a cybersecurity company and be led by John McAfee.
As part of the deal, MGT said it would issue 43.8 million shares to acquire assets from McAfee’s D-Vasive. McAfee would become chief executive and MGT would change its name to John McAfee Global Technologies, Inc.
MGT said it was committed to the deal. McAfee is currently MGT’s executive chairman and he has been the company’s main voice in press releases and on Twitter since May.
The New York Exchange did not say why the company was being denied the share listing. He did recently sue Intel to get the rights to use his name back, but that can’t be it.
John McAfee was the subject of a media frenzy in 2012 when he fled his home in Belize after police sought to question him about the shooting of a neighbour. They ultimately admitted he was not a suspect.