Motorsport Games – Press Release Cover Image
MIAMI, January 30, 2023 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or the “Company”) today announced that the Company has entered into a debt-for-equity agreement (the “Agreement”) with its majority shareholder, Motorsport Network, LLC (“Motorsport Network”), to repay $1,000,000 in debt (including principal and accrued and unpaid interest) of the Company under its $12 million line of credit with Motorsport Network .
Under the Agreement, during a period of 60 days after the closing of the transactions contemplated by the Agreement, the Company has agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) at the request of Motorsport Network to record the resale of the shares acquired by Motorsport Network under the Agreement, subject to the terms and conditions of the Agreement. The Agreement also granted certain overlapping registration rights to Motorsport Network.
“This debt swap benefits our balance sheet, allows us to pay less interest expense and will help Motorsport Games pursue opportunities for growth and product development,” said Dmitry Kozko, CEO and CEO of Motorsport Games. “This debt exchange also indicates the continued confidence that our majority shareholder, Motorsport Network, has in Motorsport Games.”
The above summary of the Agreement is incomplete, and further details regarding the Agreement, including additional terms and conditions, and this transaction will be included in the Current Report on Form 8-K that the Company intends to file with the SEC later Late today.
About racing games:
Motorsport Games, a Motorsport Network company, is a leading developer, publisher and provider to the esports ecosystem of official motorsports racing series around the world. By combining innovative and engaging 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 motorsports 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 the official Formula E racing simulation platform, while also powering F1 Arcade through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for the 24 Hours of Le Mans, 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 sparks excitement, every esports event is an adventure, and every story inspires.
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, and as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statement in this press release that is not a statement of historical fact may be considered a forward-looking statement. Words like “continue”, “will”, “may”, “could”, “should”, “expect”, “expect”, “plans”, “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 forward-looking statements, many of which are generally beyond the control of Motorsport Games and difficult to predict. Examples of such risks and uncertainties include, but are not limited to, the issuance of Class A common shares under the Arrangement affecting the value of the Company’s Class A common shares and lower-than-expected benefits, such as the ability to develop products and achieve growth, from any transaction under the Agreement. Additional factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements can be found in Motorsport Games’ filings with the SEC, including its Annual Report on Form 10-K for the fiscal year. ending on December 31, 2021, its quarterly reports on Form 10-Q filed with the SEC during 2022, as well as 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 does not assume any obligation, and specifically disclaims any intent 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 made and should not be taken to represent the plans and expectations of Motorsport Games as of any later date.
Website and Social Media Disclosure:
Investors and others should be aware that we announce 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. The information we post on our websites, social networks and blogs may be considered material information. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on websites, social media channels, and blogs, including the following (a list of which we will periodically update on our website investor relations):
The contents of these websites and social media channels are not part of, and are not incorporated by reference in, this press release.
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