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Subsequent Events
6 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 11. Subsequent Events

 

As detailed in Note 9, Final approval of the settlement of the State Derivative Actions was granted on July 2, 2020, and final approval of the settlement of the Federal Derivative Actions was granted on August 5, 2020.

 

On July 28, 2020, the holder of the June 2018 Note converted $154 of debt principal into 17,164,732 shares of common stock, reducing the outstanding principal to zero.

 

As previously disclosed, in October 2019, the Company and its then officers and directors received subpoenas from the SEC requesting information, including but not limited to, with respect to risk factors contained in certain of the Company’s filings with the SEC. On October 21, 2020, the SEC notified the Company this investigation concluded, and it does not intend to recommend an enforcement action by the Commission against MGT in this matter. This notice was sent pursuant to guidelines set out in Securities Acts Release 5310, which states in part that the notice “must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the Staff’s investigation.”

 

On December 8, 2020, the Company entered into a securities purchase agreement with Buckhead Capital LLC, pursuant to which it issued a convertible promissory note in the principal amount of $230 which is convertible, at the option of the holder, into shares of common stock at a conversion price equal to 70% of the lowest price for a share of common stock during the ten trading days immediately preceding the applicable conversion. The holder gave consideration of $200 for the convertible promissory note. The note bears interest at a rate of 8% per annum and will mature in twelve months.