McAfee's MGT receives SEC subpoena, shares drop 16 percent
(Reuters) - MGT Capital Investments <MGT.A>, led by anti-virus software pioneer John McAfee, said on Monday it had received a subpoena from the Securities and Exchange Commission requesting certain information, which sent its shares down 16 percent.
MGT said in a press release that it was cooperating with the SEC after receiving the subpoena on Thursday and that it does not believe it is or will be subject to any enforcement proceedings.
MGT was previously a fantasy sports and mobile games company with almost no revenue. Its shares surged more than 1,200 percent over seven sessions in May after it announced McAfee as its new chief executive, a move tied to its purchase of anti-spyware company D-Vasive Inc.
MGT's stock fell 53 cents to $2.73 on Monday, trimming its market capitalization to about $71 million.
A spokesman for the SEC declined to say why it subpoenaed MGT and what information it wanted.
With McAfee at the helm, MGT has said it plans to acquire cybersecurity technologies to address threats to mobile and personal devices.
An American who helped create the anti-virus software industry, McAfee generated a media frenzy in 2012 when he fled his home in Belize after police sought to question him about the murder of a neighbor. They ultimately said he was not a suspect.
(Reporting by Noel Randewich and Jim Finkle; Editing by Dan Grebler)
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