Motorsport Games (NASDAQ:MSGM) stock is rocketing higher on Tuesday after announcing a debt-for-equity exchange agreement with Motorsport Network.
Motorsport Network, the majority shareholder of Motorsport Games, has agreed to a $1 million debt repayment. This taps into Motorsport Games’ $12 million line of credit with Motorsport Network.
The details of the agreement include Motorsport Games filing a registration statement with the U.S. Securities and Exchange Commission (SEC). It will do so in a period of 60 days after transactions in the agreement are closed. This will cover the resale of the shares acquired by Motorsport Network in the agreement.
Dmitry Kozko, executive chairman and CEO of Motorsport Games, said the following about the MSGM stock news:
“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 […] This debt exchange also signals the ongoing confidence that our majority shareholder, Motorsport Network, has in Motorsport Games.”
MSGM Stock Movement Today
With today’s news comes increased interest and heavy trading of MSGM stock. This has more than 2 million shares changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 136,000 shares.
MSGM stock is up 181.8% as of Tuesday morning.
Investors looking for all of the latest stock market news are in the right place!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Tuesday! That includes this morning’s biggest pre-market stock movers, as well as the latest news concerning American Battery Technology Company (OTCMKTS:ABML) and Vinco Ventures (NASDAQ:BBIG) stock. You can read up on all that news at the links below!
More Tuesday Stock Market News
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.