Motorsport Games converts $1M debt into 338,983 shares; majority owner stake rises to 61.19%

Motorsport Games Inc.

Exchanged $1,000,000 of line-of-credit debt (principal + interest) for 338,983 Class A common shares.
Pre-exchange Motorsport Network held ~51.51% of Class A stock; post-exchange stake rises to ~61.19%.
Company will file registration statement for resale of the new shares upon demand within 60 days of closing.
Motorsport Network also holds all 700,000 Class B shares, keeping its overall voting control.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Motorsport Games Inc. entered into Exchange Agreement with Motorsport Network, LLC valued at $1,000,000 (effective 2023-01-30).

Action: entry
Agreement: equity purchase
Counterparty: Motorsport Network, LLC
Value: $1,000,000
Effective: 2023-01-30

Exact text from the filing

On January 30, 2023, Motorsport Games Inc. (the “Company”) entered into a debt-for-equity exchange agreement (the “Exchange Agreement”) with Motorsport Network, LLC (“Motorsport Network”) whereby the Company issued 338,983 shares (the “Acquired Shares”) of its Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), to Motorsport Network, which amount represents the aggregate number of shares of Class A Common Stock equal to $1,000,000 (the “Discharged Debt”)

View on SEC.gov

Browse all material agreements →

Motorsport Games Inc. filing history →

Source: SEC EDGAR

accession 0001493152-23-002908

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.