Motorsport Games Converts All Remaining Debt in Additional Debt-for-Equity Exchange with Motorsport Network

Motorsport games inc.

Motorsport Games – Press Release Cover Image

Motorsport Games – Press Release Cover Image

MIAMI, 01 Feb. 12, 2023 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or the “Company”) today announced that the Company has entered into a supplemental debt-for-equity swap agreement ( the “Agreement”) with its majority shareholder, Motorsport Network, LLC (“Motorsport Network”), to repay $2,948,565.99 representing all outstanding debt (including principal and accrued and unpaid interest ) of the Company under its $12 million line of credit with Motorsport Network.

Pursuant to the agreement, for a period of 60 days from the closing of the transactions contemplated under 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 register the resale of shares acquired by Motorsport Network under the Agreement, subject to the terms and conditions of the Agreement. The deal also granted certain piggyback recording rights to Motorsport Network.

The above summary of the agreement is incomplete, and further details regarding the agreement, including additional terms and conditions, and this transaction will be contained in the current report on Form 8-K that the company has intend 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 around the world. Combining innovative and engaging video games with exciting esports competition 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 motor racing series on PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, the 24 Hours of Le Mans and the British Touring Car Championship ( “BTCC”), as well as state-of-the-art 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, FIA World Rallycross Championship and eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where every product inspires excitement, every esports event is an adventure, and every story inspires.

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Forward-looking statements:

Certain statements contained 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 are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that are not statements of historical fact may be deemed to be statements prospective. Words such as “continue”, “will”, “may”, “could”, “should”, “expect”, “expect”, “plan”, “intend”, “anticipates”, “believes”, “estimates”, “predicts”, “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, but are not limited to, the issuance of Class A common stock under the Agreement affecting the value of the Company’s Class A common stock and lower benefits expectations, such as the ability to develop products and achieve growth, from any transaction under the Agreement. Other factors that could cause actual results to differ materially from those expressed or implied by 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 in 2022, and in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may alter its plans, intentions and expectations. Motorsport Games undertakes no obligation, and 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 important financial information to our investors via our Investor Relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, along with 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. Accordingly, we encourage investors, the media, and others interested in our business to review the information we post on websites, social media, and blogs, including the following information (which list will be updated from time to time on our Investor Relations website):

Content from such websites and social media channels is not part of this press release and will not be incorporated by reference into it.

contacts:

Investors:
[email protected]

Media:
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4b9e488a-5297-41e5-96cf-13672a005843