Motorsport Games Says On Oct. 26, BARC Limited Delivered Notice To Co. Terminating License Agreement Dated May 29, 2020
Portfolio Pulse from Benzinga Newsdesk
Motorsport Games Inc. (MSGM) has received a notice from BARC Limited terminating their license agreement, effective November 3, 2023. The termination was due to MSGM's failure to meet certain obligations, including the release and sale of BTCC gaming and esports products within two years of the agreement's effective date and the payment of certain royalties. Following the termination, all outstanding royalties and other sums payable by MSGM to BARC became due, amounting to approximately $0.8 million.
November 06, 2023 | 10:23 pm
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Motorsport Games Inc. (MSGM) has lost its license agreement with BARC Limited due to unmet obligations, and now owes BARC approximately $0.8 million in outstanding royalties and other sums.
The termination of the license agreement with BARC Limited could negatively impact Motorsport Games Inc.'s future product offerings and revenues, as they have lost the rights to use certain licensed intellectual property for motorsports and/or racing video gaming products related to the BTCC. Additionally, the immediate payment of approximately $0.8 million in outstanding royalties and other sums could put financial strain on the company.
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