Motorsport Games – Cover photo of the press release
MIAMI, Jan. 30, 2023 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or the “Company”) announced today that the Company has entered into an agreement to exchange debt for equity ( the “Agreement”) with its controlling shareholder, Motorsport Network, LLC (“Motorsport Network”), owes the Company $1,000,000 (including principal and accrued and unpaid interest) under its $12 million line of credit Repay Motorsport Network.
Under the terms of the Agreement, for a period of 60 days following the closing of the transactions contemplated by the Agreement, the Company agreed to file a registration statement with the Securities and Exchange Commission (“SEC”), at the request of Motorsport Network, to register the resale of the of Motorsport Network shares acquired under the Agreement, subject to the terms of the Agreement. The agreement also granted Motorsport Network certain piggyback registration rights.
“This swap of debt benefits our balance sheet, allows us to pay less interest expense and will help Motorsport Games pursue product development and growth opportunities,” said Dmitry Kozko, CEO and Executive Chairman of Motorsport Games. “This debt swap also signals the continued confidence that our majority shareholder, Motorsport Network, has in Motorsport Games.”
The foregoing summary of the agreement is incomplete and further details relating to the agreement, including additional terms and conditions, and this transaction will be included in the Company’s most recent report on Form 8-K, which the Company plans to file with the SEC later today.
About Motorsport Games:
Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and provider of esports ecosystems for official motorsport racing series around the world. By combining innovative and immersive video games with exciting eSports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series for PC, PlayStation, Xbox, Nintendo Switch and mobile devices, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”). as well as the industry-leading simulations rFactor 2 and KartKraft. rFactor 2 also serves as Formula E’s official sim racing platform and supports F1 Arcade through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for the Le Mans 24 Hours, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where every product creates excitement, every esports event is an adventure, and every story inspires.
Forward-looking statements:
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and will be made provided pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words like “continue”, “will”, “may”, “could”, “should”, “expect”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate” Forecast”, “potential” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, many of which are generally beyond Motorsport Games’ control and are difficult to predict. Examples of such risks and uncertainties include, without limitation, the issuance of Class A common stock under the Arrangement affecting the value of the Company’s Class A common stock and less than anticipated benefits, such as B. The ability to develop products and grow each transaction under the agreement. Additional factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements are contained in Motorsport Games’ filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2018. Fiscal year ended December. 2021, its quarterly reports on Form 10-Q filed with the SEC in 2022, and in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and expressly disclaims any intention or obligation, to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date on which they are made and should not be construed as representing Motorsport Games’ plans or expectations as of a later date.
Website and Social Media Disclosure:
Investors and others should note that we disclose material financial information to our investors through our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we publish on our websites, social media and blogs could be considered material information. As such, we encourage investors, the media and others with an interest in our company to review the information we post on our websites, social media channels and blogs, including the following (a list of which we publish from time to time on our investor Relations website update):
The contents of these websites and social media channels are not part of this press release and are not incorporated by reference.
Contacts:
Investors:
[email protected]
Media:
[email protected]
An image accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4b9e488a-5297-41e5-96cf-13672a005843
