Motorsport Games Inc MSGM shares traded higher by more than 700% on Tuesday before adding a more than 200% gain in premarket trading Wednesday morning. After the company announced an offering, the stock fell ahead of the open.
A major move in the low-float stock this week has resulted in the issuance and sale of 183,020 shares at a price of $21.40 per share in a registered direct offering.
The gross proceeds from the offering are expected to be $3.9 million.
On Monday, Motorsport Games entered into a debt-for equity exchange agreement with a majority stockholder Motorsport Network LLC to repay $1 million in debt under a $12 million line of credit. The news sparked a major surge in the stock.
At the time, this debt exchange benefit our balance sheet, allowing us to pay less interest expense and will help Motorsport Games to pursue product development and growth opportunities, said Dmitry Kozko, executive chairman and CEO of Motorsport Games.
The average price of $2.95 was disclosed by shareholder Mike Zoi on Monday, as well as the purchase of 338,983 shares, per a regulatory filing with the SEC.
Check This Out: Recent Insider Trading Activity
The average session volume of Motorsport Games is less than 1 million, according to Benzinga Pro. Tuesday's session volume was just shy of 50 million and Wednesday's trading volume is already approaching 10 million in early trading.
The stock has been trending on social media platforms for the last two days. It was the top trending ticker on Stocktwits at the time of publication.
The stock was up another 72.9% in Wednesday's session, trading at $36.99 at the time of writing, according to Benzinga Pro.