Motorsport Games Converts All Remaining Debt in Additional Debt-for-Equity Exchange with Motorsport Network
February 01 2023 - 3:30PM
Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or the
“Company”) today announced that the Company has entered into an
additional debt-for-equity exchange agreement (the “Agreement”)
with its majority stockholder, Motorsport Network, LLC (“Motorsport
Network”), to repay $2,948,565.99 representing all remaining debt
(including principal and accrued and not yet paid interest) of the
Company under its $12 million line of credit with Motorsport
Network.
Under the Agreement, for a period of 60 days
from the closing of the transactions contemplated under the
Agreement, the Company agreed to file a registration statement with
the Securities and Exchange Commission (“SEC”) upon Motorsport
Network’s demand in order to register 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 piggyback registration rights to Motorsport Network.
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 contained in the Current Report on Form 8-K the Company
intends to file with the SEC later today or tomorrow.
About Motorsport Games:
Motorsport Games, a Motorsport Network company,
is a leading racing game developer, publisher and esports ecosystem
provider of official motorsport racing series throughout the world.
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 motorsport racing series across PC,
PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR,
INDYCAR, 24 Hours of Le Mans and the British Touring Car
Championship (“BTCC”), as well as the industry leading rFactor 2
and KartKraft simulations. rFactor 2 also serves as the official
sim racing platform of Formula E, while also powering F1 Arcade
through a partnership with Kindred Concepts. Motorsport Games is an
award-winning esports partner of choice for 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 each product drives excitement,
every esports event is an adventure and every story inspires.
Forward Looking Statements:
Certain statements in this press release which
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 are provided pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Any statements in
this press release that are not statements of historical fact may
be deemed forward-looking statements. Words such as “continue,”
“will,” “may,” “could,” “should,” “expect,” “expected,” “plans,”
“intend,” “anticipate,” “believe,” “estimate,” “predict,”
“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 in the
forward-looking statements, many of which are generally outside the
control of Motorsport Games and are difficult to
predict. Examples of such risks and uncertainties include,
without limitation, issuance of shares of Class A common stock
under the Agreement impacting the value of the Company’s Class A
common stock and less than expected benefits, such as the ability
to develop product and achieve growth, from any transaction under
the Agreement. Additional factors that could cause actual results
to differ materially from those expressed or implied in the
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 ended 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 assumes no obligation,
and it specifically disclaims any intention or obligation, to
update any forward-looking statements, 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 they are made and should not be relied upon as representing
Motorsport Games’ plans and expectations as of any subsequent
date.
Website and Social Media
Disclosure:
Investors and others should note that we
announce material financial information to our investors using 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 post on our websites, social
media and blogs could be deemed to be material information.
Therefore, we encourage investors, the media and others interested
in our company to review the information we post on the websites,
social media channels and blogs, including the following (which
list we will update from time to time on our investor relations
website):
Websites |
Social Media |
motorsportgames.com |
Twitter: @msportgames & @traxiongg |
traxion.gg |
Instagram: msportgames & traxiongg |
motorsport.com |
Facebook: Motorsport Games & traxiongg |
|
LinkedIn: Motorsport Games |
|
Twitch: traxiongg |
|
Reddit: traxiongg |
The contents of these websites and social media channels are not
part of, nor will they be incorporated by reference into, this
press release.
Contacts:
Investors: investors@motorsportgames.com
Media: pr@motorsportgames.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4b9e488a-5297-41e5-96cf-13672a005843
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