Motorsport Games Inc (MSGM) Skyrockets over 1,000%. Is it too late to invest?
- Motorsport Games Inc (NASDAQ: MSGM) is up more than 1000% in the last three days.\
- The company announced yesterday that it has received a positive note from Nasdaq Stock Market LLC, informing the public that it has regained full compliance with the exchange’s listing rules.
- Today, February 1st, company announced that it has entered into a definitive agreement for the issuance and sale of 183,020 shares at the price of $21.40 per share. That is expected to give the company $4 million in proceeds for game development and working capital.
Motorsport Games Inc (NASDAQ: MSGM) is a video game developer based in America. It also acts as a publisher and event organizer of esports since it is part of the Motorsport Network. It was founded in 2018 in Miami, Florida. In 2021, the company made a revenue of $ 15.08 million.
Motorsport Games Inc shares skyrocketed on Tuesday with +710.60% from $7.40 per share to $ The company announced yesterday that it has received a positive note from Nasdaq Stock Market LLC, informing the public that it has regained full compliance with the exchange’s listing rules.
Today the company and as I am writing this article, the share price is approaching $40 per share. That is over 1,000% gains in just three days!
On November 11,2022 the company informed Nasdaq that it could not comply with its listing rule that requires a minimum of 500,000 publicly held shares. Nasdaq Listing rules defines (ii) rule 5605(b)(1) which requires a majority of the company’s board of directors to be compromised of independent directors as defined in rule 5605 (a)(2) and rule 5605 (c)(2) which requires the audit committee of the board to consist of at least 3 independent directors meeting the heightened independence standards for audit members1.
Today, February 1st, company announced that it has entered into a definitive agreement for the issuance and sale of 183,020 shares of the company’s Class A common stock at a price of $21.40 per share. The offering is expected to be completed on the 3rd of February and the proceeds are expected to be somewhere around $4 million. The proceeds will be used for further development of games, working capital etc.
SHALL I INVEST IN MOTORSPORT GAMES INC?
In order to estimate the company’s future if you are looking to invest or trade into the gaming industry you should know:
Motorsport Games is the official licensed video game developer of for iconic motorsport racing series on PC, PlayStation, Nintendo Switch, Xbob including eNASCAR, the iRacing arena.
The first racing of eNASCAR was in 2021 and had a total audience of 15,000+. However, in the races that followed that year the audience was to reduce to about 5,000+2.
Let’s talk numbers. As of January 31, 2023, Motorsport Games Inc had a $22.0 million market capitalization, putting it in the 17th percentile of companies in the Online Services industry. It’s P/E is negative due to bad trailing 12-month revenue of $14.8 million with a -257.6% profit margin.
However, the gaming industry is growing day by day since more and more people become gamers.
According to Truelist, the spending on video games has been the highest ever in 2022 and this is expected to increase in 2023.
1.Motorsports regains full compliance with Nasdaq. https://motorsportgames.com/motorsport-games-regains-full-compliance-with-nasdaq-listing-rules/
2.eNASCAR statistics of iRacings in 2021. https://www.statista.com/statistics/1241592/enascar-iracing-series-viewers/
Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.
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