Motorsport Games has until 14th April 2025 to regain compliance, or risks being delisted from the Nasdaq stock market.
This follows another extension granted by the New York exchange, with the company slipping out of compliance in November last year.
Meeting Nasdaq’s minimum $2.5m stockholders equity requirement is necessary before the deadline. Last September, MSG reported equity of $2,170,911.
Failure to meet the requirement could result in the aforementioned delisting – although Motorsport Games could appeal to a hearing panel.
Should a company be delisted, it doesn’t mean it would automatically cease trading. It could mean shares are traded over-the-counter, which is less transparent, and current shareholders may see decreased liquidity.
The notice arrives as a time of malaise, but also, resurgence for the outfit.
It must stick to a payment plan for previously overdue installments when taking ownership of the Studio 397 development team. Meanwhile, documents published this week show that its CEO, Stephen Hood, took home $343,420 in 2024, thanks in part to an $81,391 ‘Option Award’.
Last year, Motorsport Games announced widespread layoffs as it hunted for new investors or owners.
However, its Le Mans Ultimate simulation has hit new peak post-release player numbers and an alleged securities fraud case recently ruled in its favour.
Update: This article originally stated that Stephen Hood had a salary increase of $89,000, not the ‘Option Award’ of $81,391.
Chat with the Community
Sign Up To CommentIt's completely Free