It was just days ago that Motorsport Games (NASDAQ:MSGM<\/strong><\/a>) was running flat out on all cylinders after following the most basic rules of Nasdaq trading<\/a>. Now, that finely-tuned engine just threw a rod and plunged just over a third in Thursday afternoon trading. What hit Motorsport Games that hard? A new debt arrangement with its majority stockholder.<\/p>\n The new arrangement, a debt-for-equity deal, calls for Motorsport Games to pay the current outstanding debt with Motorsport Network, its primary shareholder. Motorsport Games currently owes roughly $2.949 million under the $12 million line of credit that Motorsport Network extended. The debt will be paid back with the release of new stock shares. Motorsport Games will file registration with the SEC and also will give Motorsport Network some new piggyback registration rights. More details of the arrangement will be made available once the notice with the SEC is filed.<\/p>\n However, Motorsport Games won\u2019t just be making stock and sending it to Motorsport Network. Reports note that the value of the proceeds from the stock creation will be $3.39 million. That\u2019s about $350,000 extra, though there are also some fees and expenses that need to be addressed. Motorsport Games noted that the proceeds will assist in further game development<\/a>, as well as for extra working capital and the always-popular \u201cgeneral corporate purposes.\u201d<\/p>\n The last five days of trading<\/a> for Motorsport Games proved volatile at best. However, it\u2019s also volatile in a clear upward direction<\/strong><\/em>. Where Motorsport Games stock started flat around the $5 range, it\u2019s since exploded upward, briefly breaking the $45 per share mark before dropping back down to its current level.<\/p>\n Disclosure<\/a><\/p>\n<\/div>\n\n It was just days ago that Motorsport Games (NASDAQ:MSGM) was running flat out on all cylinders after following the most basic rules of Nasdaq trading. Now, that finely-tuned engine just threw a rod and plunged just over a third in Thursday afternoon trading. What hit Motorsport Games that hard? A new debt arrangement with its …<\/p>\n","protected":false},"author":1,"featured_media":50275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/50274"}],"collection":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/comments?post=50274"}],"version-history":[{"count":0,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/50274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media\/50275"}],"wp:attachment":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media?parent=50274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/categories?post=50274"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/tags?post=50274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/blog.tipranks.com\/wp-content\/uploads\/2023\/02\/Screenshot-2023-02-02-at-13-53-06-Motorsport-Games-MSGM-Stock-Price-Quote-News-Analysis.png\")
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