MSGM - Motorsport Games shores up balance sheet with debt-for-equity exchange; shares drop 11%
- Motorsport Games ( NASDAQ: MSGM ) has entered into a debt-for-equity exchange with its majority shareholder, Motorsport Network LLC.
- That move is to repay $1M in debt under an existing $12M line of credit.
- The stock fell 10.9% into Monday's close.
- It allows for the company to register the resale of the shares acquired by Motorsport Network on the latter's demand, and offers some piggyback registration rights to Motorsport Network.
- “This debt exchange benefits our balance sheet, allows us to pay less interest expense and will help Motorsport Games to pursue product development and growth opportunities,” said CEO/Executive Chairman Dmitry Kozko, who added it shows confidence from the company's majority holder.
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Motorsport Games shores up balance sheet with debt-for-equity exchange; shares drop 11%