The shares of Motorsport Games Inc. MSGM rocketed higher by more than 700% on Tuesday and were stopped several times along the way. There were several developments that fueled the buying spree. What Happened: Motorsport Games entered into a debt-for equity exchange agreement with the majority stockholder Motorsport Network LLC on Monday to repay $1 million in debt under a $12 million line of credit.
According to Dmitry Kozko, executive chairman and CEO of Motorsport Games, this debt exchange benefits our balance sheet, allows us to pay less interest expense and allows us to pursue product development and growth opportunities.
The debt exchange shows the confidence that our majority shareholder, Motorsport Network, has in Motorsport Games. The SEC filed a new regulatory filing with the shareholder Mike Zoi on Monday, which disclosed the purchase of 338,983 shares at an average price of $2.95.
Check This Out: Recent Insider Trading Activity
On Tuesday morning, Motorsport Games received a notice from the Nasdaq that it had full compliance with listing rules, fulfilling the compliance notice it received on November 11.
The extremely low-float stock surged on abnormally high volume in Tuesday's trading session. The average session volume of Motorsport Games is about 135,000, according to Benzinga Pro. Tuesday's trading volume was just shy of 50 million.
Retail traders are looking at the stock. At last check, it was among the top trending tickers on Stocktwits.
MSGM Price Action: Motorsport Games shares went up 713.7% to $21.40 on Tuesday before pulling back slightly after hours.
According to Benzinga Pro, the stock was hovering around $20.35 at the time of writing.