The Motorsport Games Odyssey keeps on continuing. And it keeps on getting weirder. In the latest stroke of madness, the entire board of directors resigned due to a "proposal to raise additional capital".
As if the story of Motorsport Games couldn't get any more complicated and convoluted, today's news seems to top everything off.
As the American company tries to find a way to raise more capital, its parent company Motorsport Network seems to have made such an outrageous proposal that the entire board of directors have resigned.
But first, a little lesson in company structure and stocks:
This means that, should no solution be found in the near future, Motorsport Games could be delisted from NASDAQ.
So, basically, if a company is delisted from NASDAQ, the stock value tends to drop dramatically. Meaning some investors or shareholders might think sooner rather than later to "get off the sinking ship".
So to keep a TL;DR of everything: This is pretty bad.
After saving themselves from delisting with a 1-to-10 stock split, they are now at risk again.
At this point, what do you think of this odyssey that Motorsport Games is going through? Is the company saveable? And how do you think will rFactor 2 be affected? Let us know in the comments down below!
As if the story of Motorsport Games couldn't get any more complicated and convoluted, today's news seems to top everything off.
As the American company tries to find a way to raise more capital, its parent company Motorsport Network seems to have made such an outrageous proposal that the entire board of directors have resigned.
But first, a little lesson in company structure and stocks:
What is a Board of Directors?
So a few key facts are:
- The board of directors of a public company is elected by shareholders.
- The board makes key decisions on issues such as mergers and dividends, hires senior managers, and sets their pay.
- Board of directors candidates can be nominated by the company's nominations committee or by outsiders seeking change.
- The New York Stock Exchange and the Nasdaq require listed companies to have a majority of outside, or independent, directors on their board.
This means that, should no solution be found in the near future, Motorsport Games could be delisted from NASDAQ.
Why being delisted is bad.
So, basically, if a company is delisted from NASDAQ, the stock value tends to drop dramatically. Meaning some investors or shareholders might think sooner rather than later to "get off the sinking ship".
So to keep a TL;DR of everything: This is pretty bad.
After saving themselves from delisting with a 1-to-10 stock split, they are now at risk again.
At this point, what do you think of this odyssey that Motorsport Games is going through? Is the company saveable? And how do you think will rFactor 2 be affected? Let us know in the comments down below!
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