Motorsport Games has adopted a limited duration stockholder rights plan and declared a dividend of one right per Class A common share, effective immediately and expiring July 20, 2027. The board approved the plan to protect stockholders amid recent significant accumulations of shares and a belief that the stock price does not reflect the company's inherent value or long-term growth potential. The rights become exercisable if a person or group acquires 12.5% or more of the outstanding Class A common stock, entitling other holders to buy additional shares at a discount. The board may exchange each right for one share or redeem rights at $0.001 per right. The plan is not a response to any specific takeover bid and is similar to those adopted by other public companies.
Motorsport Gaming Us LLCAdoption of a stockholder rights plan to protect against hostile accumulation and signal undervaluation.