MSGM - Motorsport Games announces 1-for-10 reverse stock split and 2022 restructuring program

• Motorsport Games ( NASDAQ: MSGM ) executed a support agreement with its majority stockholder, Motorsport Network, which paid a $3M cash advance to Motorsport Games under the terms of the parties’ pre-existing line of credit.
• Company also announced a new organizational restructuring program that is expected to generate material annualized cost reductions of ~$4M by the end of 2023.
• The goal of the 2022 restructuring program is to build a stronger global business operation, enhance the company’s cost efficiency and improve operating margins.
• To re-gain compliance with Nasdaq's standards, the company also announced its plans to effect a 1-for-10 reverse stock split during Q4 2022.
• Seeking Alpha states that the stock is at a high risk of performing badly due to decelerating momentum and inferior profitability when compared to other communication services stocks.

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