Motorsport Games Inc. (MSGM): M&A transaction — Motorsport Games sells NASCAR simulation license to iRacing for $5M plus deferred payments

Motorsport Games Inc.

Sold NASCAR sim-style console license to iRacing for $5M cash at closing plus up to $1M deferred ($500k at 6 months, $500k by Dec 2024).
Net proceeds used to pay NASCAR minimum guarantees: $656k for 2023 and $598k for 2024; company retains limited license to sell legacy games until Dec 2024.
Pro forma shows cash increase of ~$3.8M (to $5.8M) and reduction in net loss by $2.99M for FY2022 and H1 2023.
Company will focus on remaining assets: INDYCAR, rFactor 2, KartKraft, BTCC; plans a comprehensive commercial review of all projects.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

Motorsport Games Inc. completed a disposition involving iRacing.com Motorsport Simulations, LLC for $5,000,000 at closing (closed 2023-10-03).

Action: disposition
Counterparty: iRacing.com Motorsport Simulations, LLC
Consideration: $5,000,000 at closing
Closing: 2023-10-03

Exact text from the filing

iRacing paid to 704 $5,000,000 at closing of the transactions contemplated by the Assignment

View on SEC.gov

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

Motorsport Games Inc. entered into Assignment and Assumption Agreement with iRacing.com Motorsport Simulations, LLC valued at $5,000,000 (effective 2023-10-03).

Action: entry
Agreement: asset purchase
Counterparty: iRacing.com Motorsport Simulations, LLC
Value: $5,000,000
Effective: 2023-10-03

Exact text from the filing

On October 3, 2023, Motorsport Games Inc. (the “Company”) entered into an Assignment and Assumption Agreement (the “Assignment”) among the Company, 704GAMES LLC, a Delaware limited liability company (successor by merger to 704 Games Company, a Delaware corporation) and a wholly owned subsidiary of the Company (“704”), and iRacing.com Motorsport Simulations, LLC (“ iRacing ”).

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Motorsport Games Inc. filing history →

Source: SEC EDGAR

accession 0001493152-23-035756

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