Motorsport Games (MSGM) said Tuesday it raised $2.5 million in a private placement offering by issuing roughly 1.9 million class A common shares at $1.10 apiece.
The offering also involves a pre-funded warrant to buy up to 377,836 class A common shares at $1.0999 apiece, according to the company.
The strategic investment, led by a Pimax Innovation affiliate as well as institutional and accredited investors, closed with gross proceeds of $2.4 million on April 11, the company said.
The closing of the remaining $100,000 is expected on April 15, it added.
The proceeds are expected to enhance the company's cash position, speed up product development, help regain compliance with Nasdaq listing standards, and fund general corporate expenses, according to a statement.
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