Motorsport Games’ Entire Board of Directors Resign Over Funding Dispute
The entire board of directors at Motorsport Games have resigned over funding disputes, a new SEC filing, and an internal email to employees read. According to the document, the entire board of directors resigned following a dispute over how funding will be raised for the company.
In an internal email provided to Insider Gaming, Dmitry Kozko, the CEO of Motorsport Games told employees that the resignation of the board leaves “our organization in a non-compliant position with NASDAQ, however there is a 45-day grace period for us to present a plan on how we are able to remedy this, along with the possibility of an additional 180-day extension”.
Kozko continued to explain the company’s 1 for 10 reserve stock split and used examples of how the company can utilize it and said “all such time of options are still being explored and considered”.
The email continued “I want to assure all of you that each of these changes have been carefully made in the best interest of the business and the team, in the effort to create a strong and sustainable organization so that we fulfill our mission; to create a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.
In Q3, Motorsport Games brought in $1.2 million in revenue and a $7.5 million net loss.
One employee said on the matter “Well it’s just the usual bullshit of everything is fine because he just wants money and has done these things twice before.”
According to sources at the company, or had previously left the company, Motorsport Games has seen a lot of employees jump ship the past couple of months for one reason or another.
Some of whom were a “key part of development”, it was said.