Two meetings related to the case-Seekingalpha article
The seekingalpha article yesterday mentions that two important meetings will take place today and tomorrow which may be important events in bringing MGT and WMS Industries (WMS) closer to settlement. Regarding the courtroom developments, the Judge has ordered a case management conference where all parties will discuss dates for a settlement conference, completion of discovery, motions, the final pretrial conference and trial. Each party may be required to submit a confidential settlement memorandum to include brief explanation of the case and a candid appraisal of the respective positions, possible settlement figures and good faith estimate of the expense of carrying the litigation through trial and the appellate process, if not settled. In addition, WMS is also under pressure to settle as its shareholders vote to adopt the merger with Scientific Games Corporation (SGMS) tomorrow. Depending upon the outcome of these two meetings, the probability and proximity of the settlement may be known more clearly. The pattern of the stock movement over the last few days / weeks indicates that there may some positive undercurrent. The recent exercise of warrants at $3.85 per share also points to some strength. Even otherwise, the fact that it is trading comfortably above crucial levels indicates that the strength may be here to stay. In any case, the company has made attempts to get into the operations side of the mobile gaming and sports wagering business. This makes the business model more balanced and the cash flow may help strengthen the balance sheet of MGT. Of course, the main trigger in the short term will be what happens over the next few days in relation to the patent infringement lawsuit. WMS / SGMS will provide an update soon on the merger, and the case management conference will also provide clues to how the next few steps of the lawsuit will pan out.