Motorsport Games surges, retail investors circle game developer shares

Motorsport Games

01/02/2023 13:39

** Shares of video game developer Motorsport Games Inc
 MSGM.O  set to extend their sharp rally, up 207.9% at $65.89
premarket 
    ** Co is top trending stock on retail investor forum
Stocktwits.com 
    ** MSGM regained full compliance with Nasdaq listing rules
on Tuesday and announced a debt-for-equity exchange with
Motorsport Network late on Monday - lifting the stock up 713.2%
in the previous session 
    ** Under the agreement, co agreed to repay majority
stockholder, Motorsport Network, $1 mln in debt for 338,983 MSGM
shares under its $12 mln line of credit
    ** "The move significantly improves the company's liquidity
and reduces its interest expense. Notably, the move adds
confidence that Motorsport Network has confidence in Motorsport
Games," said analysts at Noble Capital Markets in a note
    ** All 3 brokerages covering MSGM rate it "hold"; their
median PT is $7.25 - Refinitiv data
    ** Up to last close, stock had rallied 415.7% since the
start of this year after dropping sharply in 2022 
 (Reporting by Bansari Mayur Kamdar in Bengaluru)
 ((BansariMayur.Kamdar@thomsonreuters.com;  Twitter:
@BansariKamdar;))