Automobilista 2 October 2022 Development Update

Very interesting, especially the exchange about the company's future:

Michael Kupinski -- NOBLE Capital Markets -- Analyst

Yes. Would you sell the company? Yeah.

Dmitry Kozko -- Chief Executive Officer

Look, we have a very clear growth trajectory...

He pretty much avoided saying 'no' in every way possible.

 

It's just a matter of perspective as to if that trajectory is positive or negative...

My perspective says very negative...

 

I don't think you understand how that works at all or their reason for doing it.
A revers split is not a buyback at all. No capital is exchanged and no dilution occurs.
The reason for doing it is more likely linked to meeting the exchanges requirements for listing as opposed to optics or shenanigans.

 

They did it to multiply the share price by ten to avoid being kicked out for falling below a dollar but consequently the number of shares was also divided by ten, putting them under the minimum number of shares that are permitted. So basically put out one fire and started another. Appointing new directors is easier than fixing the stock value.

If you had 1000 shares at 70 cents each last week then now you have 100 and they are worth 7$ each so you don´t win or lose anything but you are still losing 90% if you paid 30$ each for those 1000 shares back in early 2021 as that would be 300$ a share for 100 of them.

 

Yeah and it sounds like they are going to address the share issue by a separate but equally desperate dilution...haha. Which is exactly why the BOD all resigned because they didn't approve of the strategy. At this point I don't think there is a win with their flagship game a total disaster (NASCAR) and organizations trying to repeal licencing agreements, and no ace up their sleeve either. A standalone BTCC or Indycar game is not going to dig you out of the hole you're in. They have no "Call of Duty" to save them.

 

But they're holding all these licenses hostage which sucks

 

I think some of those organizations will be already warming up their lawyers...

 

I do hope they do so without feeling burned by sim racing and staying away for a while...

 

REV UP YOUR LAWERS!

 

LADIES AND GENTLEMEN! START, YOUR, LAWYEEEERS !

 

Sprint Car has become NASCAR

NASCAR announces launch of NASCAR Brasil Sprint Race

 

Now this is interesting....

 

Do we know what the cars will look like and which manufacturers?

 

Share price fell more than a dollar today. If the financials are bad tomorrow then they might be back to sub 1$ stock even after the dilution.

 

Does anyone know when Reiza Studios will take the current RC (in Beta) and make it a Public Release?

 

When it's ready™

 

Here´s the MG call audio and transcript from yesterday. The same stooges as always participate with the usual asinine questions. The most telling comment is "good luck" from the analyst!

Motorsport Games Inc. (MSGM) Q3 2022 Earnings Call Transcript | Seeking Alpha

Mike Hickey

Hey, Dmitry, Ken, good afternoon, guys. Thanks for taking my questions. Dmitry, you had some -- you had some turnover on your executive team and your Board. Can you just give us some context in terms of why that occurred and how you are thinking about refilling some of those positions? Obviously, you can only wear so many hats. Funding is probably your number one priority. But as you sort of think about getting that funding and moving into ‘23 and building your next game, how do you rebuild your routine here?

Dmitry Kozko

Thanks Mike for the question. So, fair question. Part about the independent Board members, right, as were stated in the 8-K and other disclosures, the main shareholder pretty much asked the independent Board members to resign as a result of a disagreement on a proposal of such directors to raise additional capital. And that’s obviously put the Company in transactions that would require shareholder approval as a first, but it would also be potentially very-dilutive to all stockholders, based on where the stock has been.

So, those members have accepted that and that’s what you have seen in a recent news. However, we do plan to, of course, invite other independent Board members. Part of that our interim CFO, who was just recently with us, was able to step in and serve as our new member of the committee and one independent Board member. We obviously have, according to the NASDAQ letter, 45 days to provide a plan to the NASDAQ staff on how we would fill other -- at least two other seats, to be in compliance with the audit committee composition of three of such members. So, we’re actively having conversations with those type of candidates.

And because John Delta had to step down from the interim CFO capacity and go to be our independent Board member, and previously, when John New was our CFO, that put me in a position to actively search for a more permanent CFO role. So currently, you’re absolutely right. The focus continues to remain on -- from my side of the office is to solve a liquidity. And I am exploring all those available options. Therefore, finding and filling a CFO role is something that I will switch gears to more actively, as soon as we’re able to address our liquidity concerns.

 

Don't we already have the Dallara F3 in AMS 2?

 

That means there's a foot in the door for an officially licensed version... It also means that a generic version is not at all likely...