MSGM Faces Nasdaq Delisting for Failing $1.00 Bid Price Rule
Ticker: MSGM · Form: 8-K · Filed: Feb 6, 2024 · CIK: 1821175
Complexity: simple
Sentiment: bearish
Topics: delisting, compliance, stock-price, regulatory-filing
TL;DR
**MSGM is getting delisted from Nasdaq for being a penny stock.**
AI Summary
Motorsport Games Inc. (MSGM) announced on February 5, 2024, that it received a delisting notice from The Nasdaq Stock Market LLC because its Class A common stock failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days. This is a critical development for shareholders as the company's stock, currently traded on The Nasdaq Capital Market, faces potential removal from the exchange, which could severely limit its liquidity and investor appeal.
Why It Matters
Delisting from Nasdaq would make it harder for investors to buy and sell MSGM shares, potentially driving down its value and making it a much riskier investment.
Risk Assessment
Risk Level: high — The company's stock is at high risk of delisting, which significantly reduces liquidity and investor confidence.
Analyst Insight
Investors should carefully evaluate the increased risk of illiquidity and potential further price depreciation for MSGM shares due to the delisting notice and consider if holding the stock aligns with their risk tolerance.
Key Numbers
- $1.00 — Minimum Bid Price (The threshold MSGM failed to maintain for continued listing on Nasdaq.)
- 30 — Consecutive Business Days (The period over which MSGM's stock price was below the minimum bid requirement.)
Key Players & Entities
- Motorsport Games Inc. (company) — the registrant facing delisting
- The Nasdaq Stock Market LLC (company) — the exchange from which MSGM faces delisting
- $1.00 (dollar_amount) — the minimum bid price requirement
- February 5, 2024 (date) — date of the earliest event reported regarding the delisting notice
- MSGM (company) — trading symbol for Motorsport Games Inc.
Forward-Looking Statements
- MSGM's stock price will experience increased volatility and downward pressure. (MSGM) — high confidence, target: Q2 2024
- The company will attempt to regain compliance with Nasdaq's listing rules, possibly through a reverse stock split. (Motorsport Games Inc.) — medium confidence, target: Q3 2024
FAQ
What is the primary reason Motorsport Games Inc. received a delisting notice from Nasdaq?
Motorsport Games Inc. received a delisting notice because its Class A common stock failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days, as stated in the filing on February 5, 2024.
What is the trading symbol for Motorsport Games Inc.?
The trading symbol for Motorsport Games Inc. is MSGM, as indicated in the filing under 'Securities registered pursuant to Section 12(b) of the Act'.
On what date was the earliest event reported in this 8-K filing?
The earliest event reported in this 8-K filing occurred on February 5, 2024, as stated under 'Date of Report (Date of earliest event reported)'.
Which Nasdaq market is Motorsport Games Inc. currently listed on?
Motorsport Games Inc. is currently listed on The Nasdaq Capital Market, as specified in the filing under 'Name of each exchange on which registered'.
What is the par value per share of Motorsport Games Inc.'s Class A common stock?
The par value per share of Motorsport Games Inc.'s Class A common stock is $0.0001, as detailed in the filing under 'Title of each class'.
Filing Stats: 1,023 words · 4 min read · ~3 pages · Grade level 16.7 · Accepted 2024-02-06 13:07:51
Key Financial Figures
- $0.0001 — hich registered Class A common stock, $0.0001 par value per share MSGM The Nasdaq
- $2,500,000 — regain compliance with Nasdaq's minimum $2,500,000 stockholders' equity requirement set fo
Filing Documents
- form8-k.htm (8-K) — 40KB
- 0001493152-24-005062.txt ( ) — 211KB
- msgm-20240205.xsd (EX-101.SCH) — 3KB
- msgm-20240205_lab.xml (EX-101.LAB) — 33KB
- msgm-20240205_pre.xml (EX-101.PRE) — 22KB
- form8-k_htm.xml (XML) — 4KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Motorsport Games Inc. Date: February 6, 2024 By: /s/ Stephen Hood Stephen Hood Chief Executive Officer and President 3