MGT Capital Investments Inc. (MGT) shares gained close to 40% in trading Tuesday, finishing the trading session at $2.50 a share on extremely heavy volume of 8.8 million shares after the company announced it is terminating its acquisition of D-Vasive and Demonsaw.

According to the company, as previously disclosed in September, the NYSE MKT (formerly NYSE Amex) informed MGT that it would not approve for listing the 43.8 million shares required to be issued to complete the D-Vasive merger. Since then, MGT has had talks with all parties involved to reach a revised agreement on acceptable terms. MGT Capital Investments said it now plans to terminate the asset purchase agreement with D-Vasive.

MGT To License Demonsaw Source Code

Instead, MGT said it reached tentative agreements with John McAfee and Eric Anderson to execute employment agreements as CEO and CTO, respectively. What’s more, the company reached a tentative agreement to exclusively license or acquire the Demonsaw source code and technology platform from D-Vasive. The company thinks the revised deal structure will be acceptable under NYSE MKT rules.

“To further clarify, MGT's acquisition and commercialization plans of both the Sentinel technology, a network intrusion detector, and the E-Tagged technology, a mobile device tracking platform, remain in place as previously disclose. In addition, the Company's bitcoin mining operations are also fully owned and operated by MGT,” the company said in a press release.

NYSE Declines to List Shares of Combined Company

Earlier this fall, the NYSE declined to list shares of the company headed by CEO John McAfee formed by a merger with D-Vasive. MGT agreed to acquire D-Vasive earlier in the year for $300,000. It also acquired Demonsaw, a secure and anonymous file sharing software platform. The idea is to merge the companies to become a security software powerhouse operating under the name John McAfee Global Technologies, led by John McAfee. “Both products are critical to the success of MGT, and without which we cannot proceed with our  company’s vision. Most importantly, Mr. McAfee and Mr. Anderson are fully committed to going forward and building our company as Chief Executive Officer and Chief Technology Officer, respectively,” MGT said in a recent Twitter Q&A. (See also: Shareholders Approve McAfee Proposals.)

The announcement on the part of MGT, which was well received by investors, comes at a time when the company has been reeling from some blows with the most recent being a disclosure the U.S. Securities and Exchange Commission issued a subpoena. The company said it was cooperating but said it isn’t clear why the SEC issued one. In a lengthy Twitter statement MGT and that the rules and regulations of the SEC prevent it from disclosing the exact details of the subpoena. It noted that a subpoena is a common method for the SEC to find facts. (See also: MGT Capital Says It Is Not Under SEC Scrutiny.)