Motorsport Games (MSGM, Financial) has launched a private placement initiative valued at approximately $2.5 million, following a definitive agreement signed on April 11, 2025, with select institutional and accredited investors. The company is offering 1,894,892 shares of its Class A common stock and a pre-funded warrant for up to 377,836 additional shares. The warrant is priced at an exercise price of $0.0001 per share.
As of April 11, 2025, Motorsport Games successfully closed the majority of the placement, securing $2.4 million, with the remaining $100,000 expected to close with a single investor by April 15, 2025. The shares were sold at $1.10 each, and the warrants at $1.0999, which is about 33% above the closing price on April 10, 2025.
The capital influx is projected to bolster the company's financial standing by funding its working capital needs and supporting general corporate expenses. Additionally, it will enable Motorsport Games to advance its product development efforts and help the company meet The Nasdaq Capital Market's minimum stockholders' equity requirements.
Per the Purchase Agreement, investors who purchased at least 50.1% interest of the issued securities will nominate an individual to join Motorsport Games' board as a Class II director, serving until the 2026 annual stockholders' meeting. These investors will also have the privilege to appoint a member to the company's management team, contingent on board approval.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Motorsport Games Inc (MSGM, Financial) is $5.00 with a high estimate of $5.00 and a low estimate of $5.00. The average target implies an upside of 465.23% from the current price of $0.88. More detailed estimate data can be found on the Motorsport Games Inc (MSGM) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Motorsport Games Inc's (MSGM, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Motorsport Games Inc (MSGM, Financial) in one year is $2.75, suggesting a upside of 210.87% from the current price of $0.8846. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Motorsport Games Inc (MSGM) Summary page.
