Motorsport Games Inc. Announces $2.5 Million Strategic Investment led by Virtual Reality Company Pimax
Motorsport Games (MSGM) has secured a $2.5 million strategic investment through a private placement offering, led by virtual reality company Pimax. The deal includes issuing 1,894,892 shares of Class A common stock and a pre-funded warrant for 377,836 shares at $0.0001 per share. The purchase price of $1.10 per share represents a 33% premium over the April 10, 2025 closing price.
The investment, with $2.4 million already closed on April 11 and remaining $100,000 expected to close on April 15, will fund working capital, corporate expenses, and accelerate product development. The deal aims to help MSGM regain Nasdaq compliance and includes provisions for purchasers to appoint a Class II director and a management team member.
This strategic partnership combines MSGM's Le Mans Ultimate racing simulation expertise with Pimax's VR hardware leadership, focusing on enhancing immersive sim racing experiences.
Motorsport Games (MSGM) ha ottenuto un investimento strategico di 2,5 milioni di dollari tramite un'offerta privata guidata dalla società di realtà virtuale Pimax. L'accordo prevede l'emissione di 1.894.892 azioni ordinarie di Classe A e un warrant pre-finanziato per 377.836 azioni a 0,0001 dollari per azione. Il prezzo di acquisto di 1,10 dollari per azione rappresenta un premio del 33% rispetto al prezzo di chiusura del 10 aprile 2025.
L'investimento, con 2,4 milioni già conclusi l'11 aprile e i restanti 100.000 dollari previsti per il 15 aprile, servirà a finanziare il capitale operativo, le spese aziendali e ad accelerare lo sviluppo del prodotto. L'accordo mira a supportare MSGM nel recupero della conformità al Nasdaq e prevede la possibilità per gli investitori di nominare un direttore di Classe II e un membro del team di gestione.
Questa partnership strategica unisce l'esperienza di MSGM nella simulazione di corse Le Mans Ultimate con la leadership di Pimax nell'hardware VR, con l'obiettivo di migliorare le esperienze immersive nelle corse simulative.
Motorsport Games (MSGM) ha asegurado una inversión estratégica de 2,5 millones de dólares mediante una oferta privada liderada por la empresa de realidad virtual Pimax. El acuerdo incluye la emisión de 1.894.892 acciones ordinarias Clase A y una garantía prefinanciada para 377.836 acciones a 0,0001 dólares por acción. El precio de compra de 1,10 dólares por acción representa una prima del 33% sobre el precio de cierre del 10 de abril de 2025.
La inversión, con 2,4 millones ya cerrados el 11 de abril y los 100.000 dólares restantes previstos para el 15 de abril, financiará capital de trabajo, gastos corporativos y acelerará el desarrollo del producto. El acuerdo busca ayudar a MSGM a recuperar el cumplimiento en Nasdaq e incluye disposiciones para que los compradores nombren a un director de Clase II y a un miembro del equipo directivo.
Esta alianza estratégica combina la experiencia de MSGM en simulación de carreras Le Mans Ultimate con el liderazgo en hardware de realidad virtual de Pimax, enfocándose en mejorar las experiencias inmersivas en simuladores de carreras.
Motorsport Games (MSGM)는 가상현실 기업 Pimax가 주도하는 사모 발행을 통해 250만 달러의 전략적 투자를 확보했습니다. 이번 거래는 클래스 A 보통주 1,894,892주와 주당 0.0001달러에 377,836주의 사전 자금 조달 워런트를 포함합니다. 주당 1.10달러의 매입가는 2025년 4월 10일 종가 대비 33% 프리미엄에 해당합니다.
투자금 중 240만 달러는 4월 11일에 이미 마감됐으며, 나머지 10만 달러는 4월 15일 마감 예정입니다. 자금은 운전자본, 기업 비용 및 제품 개발 가속화에 사용될 예정입니다. 이 거래는 MSGM이 나스닥 규정 준수를 회복하는 데 도움을 주며, 투자자들이 클래스 II 이사 및 경영진 멤버를 임명할 수 있는 조항을 포함합니다.
이번 전략적 파트너십은 MSGM의 르망 얼티밋 레이싱 시뮬레이션 전문성과 Pimax의 VR 하드웨어 리더십을 결합해 몰입형 시뮬레이션 레이싱 경험을 향상하는 데 중점을 둡니다.
Motorsport Games (MSGM) a obtenu un investissement stratégique de 2,5 millions de dollars via une offre privée menée par la société de réalité virtuelle Pimax. L'accord comprend l'émission de 1 894 892 actions ordinaires de classe A et un warrant préfinancé pour 377 836 actions à 0,0001 dollar par action. Le prix d'achat de 1,10 dollar par action représente une prime de 33% par rapport au cours de clôture du 10 avril 2025.
L'investissement, dont 2,4 millions ont déjà été finalisés le 11 avril et les 100 000 dollars restants devraient être clôturés le 15 avril, financera le fonds de roulement, les dépenses d'entreprise et accélérera le développement des produits. L'accord vise à aider MSGM à retrouver sa conformité au Nasdaq et inclut des dispositions permettant aux investisseurs de nommer un administrateur de classe II et un membre de l'équipe de direction.
Ce partenariat stratégique combine l'expertise de MSGM en simulation de course Le Mans Ultimate avec le leadership de Pimax dans le matériel VR, en se concentrant sur l'amélioration des expériences immersives de simulation de course.
Motorsport Games (MSGM) hat eine strategische Investition von 2,5 Millionen US-Dollar durch ein Privatplatzierungsangebot gesichert, das vom Virtual-Reality-Unternehmen Pimax angeführt wird. Das Geschäft umfasst die Ausgabe von 1.894.892 Stammaktien der Klasse A sowie einem vorfinanzierten Bezugsrecht für 377.836 Aktien zu je 0,0001 US-Dollar. Der Kaufpreis von 1,10 US-Dollar pro Aktie entspricht einer Prämie von 33% gegenüber dem Schlusskurs vom 10. April 2025.
Die Investition, von der bereits 2,4 Millionen US-Dollar am 11. April abgeschlossen wurden und die restlichen 100.000 US-Dollar voraussichtlich am 15. April abgeschlossen werden, dient der Finanzierung des Betriebskapitals, der Unternehmensausgaben und der Beschleunigung der Produktentwicklung. Das Geschäft soll MSGM dabei helfen, die Nasdaq-Compliance wiederzuerlangen, und beinhaltet Bestimmungen, die es den Käufern ermöglichen, einen Direktor der Klasse II sowie ein Mitglied des Managementteams zu ernennen.
Diese strategische Partnerschaft verbindet MSGMs Expertise in der Le Mans Ultimate Rennsimulation mit Pimax' Führungsposition im VR-Hardwarebereich und konzentriert sich darauf, immersive Rennsimulationserlebnisse zu verbessern.
- Secured $2.5M strategic investment at 33% premium to market price
- Partnership with VR leader Pimax creates product development synergies
- Investment helps regain Nasdaq compliance
- Improves company's cash position and working capital
- Dilutive effect from issuing new shares and warrants
- Company requires external funding for operations and development
- Current non-compliance with Nasdaq listing requirements
Insights
This $2.5 million strategic investment at a
Beyond the capital infusion, this deal carries significant governance implications. The investors gain board representation and potential management influence despite investing a relatively modest sum. For a company with a
The dilution impact appears reasonable given the premium pricing. While the issuance of nearly 2.3 million new shares (including warrants) will dilute existing shareholders, the above-market pricing mitigates some concerns. The strategic partnership aspect potentially creates value beyond the mere capital infusion, as combining Motorsport Games' simulation expertise with Pimax's VR hardware could accelerate product development cycles and expand market opportunities.
The prudent allocation of funds between working capital needs and product development will be crucial for translating this investment into sustainable growth. The immediate improvement in financial position should reassure stakeholders about near-term stability while providing runway for strategic initiatives.
The partnership between Motorsport Games and Pimax represents a strategically compelling alignment of complementary technologies in the simulation racing sector. Motorsport Games' Le Mans Ultimate title already incorporates VR capabilities, while Pimax specializes in high-end VR hardware - creating natural integration opportunities to enhance immersive racing experiences.
The sim racing market sits at a technological inflection point where VR adoption could potentially accelerate user engagement and spending. Traditional flat-screen racing setups have reached maturity in terms of visual fidelity, making immersion the next frontier for competitive differentiation. Pimax's expertise in high-resolution, wide field-of-view VR headsets addresses precisely the limitations that have hindered widespread VR adoption in simulation racing: motion sickness and insufficient visual clarity.
This investment likely enables accelerated development in multiplayer VR experiences, custom VR interfaces optimized for racing, and potentially exclusive features for Pimax hardware owners. For Pimax, gaining direct insight into racing simulation development through board representation could inform their hardware roadmap, potentially leading to specialized racing-focused VR products.
The companies' shared emphasis on realism creates a natural philosophical alignment. Both companies target enthusiast markets willing to pay premium prices for maximum authenticity - Motorsport Games through accurate physics/handling models and Pimax through high-resolution, wide-FOV hardware. This partnership positions both companies to deliver specialized solutions for dedicated sim racers seeking the most immersive experiences possible.
MIAMI, April 15, 2025 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (“Motorsport Games” or “the Company”), the racing game developer and publisher of prominent simulation racing (or “sim racing”) titles including Le Mans Ultimate, is today announcing a private placement offering for gross proceeds of approximately
The private placement closed as to gross proceeds of
The investment is expected to improve the Company’s cash position, fund working capital and general corporate expenses, and also provide funding to accelerate future product development whilst helping the Company regain compliance with The Nasdaq Capital Market’s minimum stockholders’ equity requirement set forth in Listing Rule 5550(b)(1). Pursuant to the terms of the Purchase Agreement, the Company agreed to appoint an individual designated by the purchasers that purchased at least
Stephen Hood, Chief Executive Officer and President of Motorsport Games, stated, “We have been very happy with the response to our very public desire to seek further investment in the Company and after comprehensive talks with Pimax, we are delighted to conclude their investment in Motorsport Games. This investment comes at a premium of approximately
Mr. Hood continued, “We are excited to have Pimax as partners and believe that it represents excellent value to our shareholders as we solidify the Company’s financial position to give greater confidence in our ability to excel. Similarly, we expect favorable reception from our passionate fans who are likely to be as excited as we are to have additional funding available for the business.”
Robin Weng, Founder and Chairman of Pimax commented “Sim racing players make up a vital part of the Pimax community. Through our partnership with Motorsport Games, we aim to better understand and address the specific needs of this user group, enhancing their experience with tailored VR solutions. We believe the future of sim racing lies in the shift from flat screens to fully immersive VR. Motorsport Games, known for its industry-leading realism, shares our belief that realism is the most important metric in user experience. Together, we’re accelerating this transition and pushing the boundaries of immersion. Pimax will continue to explore similar vertical partnerships to strengthen our user-focused strategy, build deeper engagement, and grow long-term loyalty within our passionate communities.”
The securities sold and to be sold in the offering, including the shares of Class A common stock underlying the pre-funded warrant, were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Regulation D promulgated thereunder and have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the unregistered common warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Motorsport Games:
Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make racing games that are authentically close to reality. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including the 24 Hours of Le Mans and the FIA World Endurance Championship, recently releasing Le Mans Ultimate in Early Access. Motorsport Games also owns the industry leading rFactor 2 and KartKraft simulation platforms. rFactor 2 also serves as an official simulation racing platform of Formula E, while also powering F1 Arcade through a partnership with Kindred Concepts. Motorsport Games is also an award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned Le Mans Virtual Series. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires.
For more information about Motorsport Games visit: www.motorsportgames.com
About Pimax:
Founded in 2015, Pimax is a pioneer in high-end virtual reality technology, driven by the vision of pushing the boundaries of innovation and helping humanity transcend its limitations through immersive technology. The company gained global recognition with the world’s first 4K VR headset and has continued to lead the industry with a series of breakthrough products, including the groundbreaking Pimax 8K, whose Kickstarter campaign set a reigning Guinness World Record for the most successful crowdfunded VR project. Other milestones include the Pimax 8KX, which won Best VR Product at CES 2020, and the CES 2024 Innovation Award-winning Pimax Crystal. Known for its cutting-edge hardware, Pimax headsets feature ultra-high resolution, high refresh rates, an ultra-wide field of view, and advanced technologies such as QLED with mini-LED backlighting, glass aspheric lenses, proprietary SLAM tracking, and high-bandwidth bridge chips that enable visually lossless data transmission from PC to headset. These innovations have made Pimax a favorite among demanding VR enthusiasts seeking unmatched clarity and immersion. Continuing to push the limits of what VR can deliver, Pimax has introduced the Crystal Light, Crystal Super—the world’s first retina-level VR headset—and the upcoming Dream Air, further demonstrating its commitment to shaping the future of virtual reality.
For more information about Pimax visit: www.pimax.com
Forward Looking Statements
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “likely,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “opportunity,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, the statements concerning the expected closing of the remaining investor on April 15, 2025, investment improving the Company’s cash position, funding working capital and general corporate expenses, and also providing funding to accelerate future product development whilst helping the Company regain compliance with The Nasdaq Capital Market’s minimum stockholders’ equity requirement set forth in Listing Rule 5550(b)(1), the premium of the transaction price compared to the closing price of our Class A common stock inspiring confidence in the Company, the potential synergies between Pimax and the Company, the Company and Pimax combining efforts and delivering a new era in a growing market working as one, having Pimax as partners representing excellent value to the Company’s shareholders, giving greater confidence in the Company’s ability to excel, the partnership with Pimax receiving a favorable reception from the Company’s fans, the Company’s fans being as excited as the Company to have additional funding available for the Company’s business, the place of fully immersive VR in the future of sim racing, the Company’s potential with Pimax to accelerate a transition from flat screens to fully immersive VR, and the opportunities for greater integration to deliver new experiences, whilst continuing to drive innovation, marketing and revenue opportunities. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation, the Company’s ability to close on the remaining
Website and Social Media Disclosure
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
| Websites | Social Media |
| motorsportgames.com | Twitter: @msportgames |
| Instagram: msportgames | |
| Facebook: Motorsport Games | |
| LinkedIn: Motorsport Games |
The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.
Contacts:
Motorsport Games Investors:
Investors@motorsportgames.com
Motorsport Games Media:
PR@motorsportgames.com
Pimax Media:
jaap@pimax.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/970818c1-e2a1-4820-aee6-ef04fecf61f6
FAQ
What is the value and terms of Pimax's strategic investment in MSGM stock?
How will MSGM use the $2.5M investment proceeds?
What governance rights did MSGM grant to the strategic investors?
What are the strategic synergies between MSGM and Pimax?
