Motorsport Games Stock Jumps 146% After $2.5 Million Investment Led by Pimax

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The company, which develops racing simulation games including Le Mans Ultimate, entered into a definitive statement connected April 11 with organization and accredited investors, including an affiliate of Pimax Innovation Inc., to contented astir 1.9 cardinal shares of Class A communal banal and a pre-funded warrant to acquisition up to astir 378,000 further shares. The shares were priced astatine $1.10 each, portion the pre-funded warrants carried an workout terms of $0.0001 per share. Motorsport Games said the offering represented a 33% premium implicit its April 10 closing price.

The institution closed connected $2.4 cardinal of the transaction connected April 11, with an further $100,000 expected to adjacent connected April 15. The proceeds are intended to bolster moving capital, money firm expenses, accelerate merchandise development, and assistance the institution regain compliance with the Nasdaq Capital Market's minimum stockholders' equity requirement.

As portion of the agreement, investors who purchased astatine slightest 50.1% of the securities volition person the close to name a Class II manager to Motorsport Games' board, with a word ending astatine the 2026 yearly meeting. They volition besides person the close to name an idiosyncratic to the absorption team, taxable to committee approval.

Motorsport Games Chief Executive Officer Stephen Hood said successful the connection that the investment, made astatine a premium, could boost shareholder confidence. He added that synergies with Pimax could amended the virtual world offerings of Motorsport Games' racing titles.

Pimax Founder and Chairman Robin Weng said sim racing players are a captious portion of the company's assemblage and that Pimax plans to deepen its absorption connected immersive virtual world experiences for this idiosyncratic base.

This nonfiction archetypal appeared connected GuruFocus.