A year and a half ago, Motorsport Games, which develops racing games under a NASCAR license, successfully entered the stock exchange — it raised $69 million through an IPO with an estimate of $ 510 million. However, now the company faces delisting.
It’s all about extremely cheap developer promotions. Since the end of April, they have been trading at a price below a dollar apiece (for example, now one share can be bought for $ 0.62). NASDAQ is not satisfied when such a low price persists for longer than 30 days.
The management of the exchange gave Motorsport Games time until December 5. If by that time its shares will not be worth at least a dollar for 10 consecutive days, the company’s securities may be removed from trading.