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MGT Capital, Tera Group to Merge, Creating Bitcoin Derivatives Exchange.

MANews-(C)2009-2015

27 February 2015 - US-based social and gaming site operator MGT Capital Investments, Inc. (NYSE: MGT) has entered into a letter of intent with US-based Bitcoin specialist Tera Group, Inc., the company said on Friday.

Tera owns TeraExchange, LLC, a swap execution facility regulated by the US Commodity Futures Trading Commission.

Under the LOI, both companies will work diligently to finalise and execute a definitive agreement by March 16, 2015.

MGT will then file a combination S-4 Prospectus and Proxy Statement with the Securities and Exchange Commission.

Under the contemplated terms of the agreement, and subject to stockholder approval, MGT will issue shares of its common stock to the current owners of Tera, representing 70% of the pro forma equity of the combined companies at closing.

Tera has played a role in the development of bitcoin derivatives. In September 2014, Tera launched on TeraExchange the first regulated Bitcoin derivative products, and a spot Bitcoin price index.

Trading of /Bitcoin derivatives is subject to the rules and regulations of TeraExchange and the CFTC. The Tera Bitcoin Price Index employs a dynamic algorithm that compiles and filters data on a real-time basis from a number of widely utilised global Bitcoin spot exchanges.

The TeraBit Index will be used as the settlement rate for /Bitcoin derivatives transactions.

Tera is led by a talented management team with a combined 47 years of experience in capital markets and derivative products, 43 years in legal and regulatory, and 46 years in technology development and engineering.

Source Capital Group, Inc. acted as sole financial advisor to Tera Group.

Country: USA

Sector: Banking/Financial Services

Target: Tera Group, Inc.

Buyer: MGT Capital Investments, Inc

Vendor:

Deal size in USD:

Type: Merger

Financing: Stock

Status: Agreed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Date:Feb 27, 2015
Words:292
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