MIAMI, Jan. 30, 2023 (GLOBE NEWSWIRE) — Motorsport Games Inc. MSGM (“Motorsport Games” or the “Company”) announced today that the Company has entered into a debt-for-equity exchange agreement (the “Agreement”) with its majority shareholder, Motorsport Network, LLC (“Motorsport Network”) to settle $1,000,000 of debt (including principal and accrued and unpaid interest) by the Company under its $12 million line of credit with Motorsport Network.

Under the terms of the Agreement, for a period of 60 days following the closing of the transactions contemplated by the Agreement, the Company agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) at the request of Motorsport Network to register the resale of the of Motorsport Network shares acquired under the Agreement, subject to the terms of the Agreement. The agreement also granted Motorsport Network certain piggyback registration rights.

“This swap of debt benefits our balance sheet, allows us to pay less interest expense and will help Motorsport Games pursue product development and growth opportunities,” said Dmitry Kozko, CEO and Executive Chairman of Motorsport Games. “This debt swap also signals the continued confidence that our majority shareholder, Motorsport Network, has in Motorsport Games.”

The foregoing summary of the agreement is incomplete and further details relating to the agreement, including additional terms and conditions, and this transaction will be included in the Company’s most recent report on Form 8-K, which the Company plans to file with the SEC later today.

About Motorsport Games:

Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider for official motorsport racing series around the world. Combining innovative and immersive video games with exciting eSports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to all….