Series A Convertible Preferred Stock

6 Months Ended

Jun. 30, 2014

Note 6. Series A Convertible Preferred Stock

On November 2, 2012, the Company closed a private placement sale of 1,380,362 shares of Series A Convertible Preferred Stock (“Preferred Stock”), (including 2,760,724 warrants to purchase MGT Common Stock) for an aggregate of $4.5 million. This transaction was approved by the Exchange on October 26, 2012. The Preferred Stock is convertible into the Company's Common Stock at a fixed price of $3.26 per share and carries a 6% dividend. The warrants have a five–year life and are exercisable at $3.85 per share. Total issuance cost for this private placement for the year ended December 31, 2012, was $88.

For the three months ended June 30, 2014 and 2013, respectively, the Company issued 144 and 2,127 of Dividend Shares to the Preferred Stock holders. For the six months ended June 30, 2014 and 2013, respectively, the Company issued 286 and 20,933 of Dividend Shares to the Preferred Stock holders.