North American game publisher Motorsport Games has announced it has secured $2.5m (~£1.8m) as part of a recent strategic investment.
The investment was led by Delaware-based technology company Pimax, which specialises in virtual reality (VR) headsets.
According to a release, the funding will be used to improve Motorsport Games‘ ‘cash position, fund working capital and general corporate expenses. Additionally, it will also help the company ‘accelerate future product development.’
The investment is for 1.8 million Class A common stock and a pre-funded warrant for an additional 377,836 shares prices at $1.10 (~£0.83) and $1.09 (~£0.82), respectively.
Motorsport Games is the publisher of sim racing title Le Mans Ultimate which launched in early access in February 2024. Developed by Studio 397, the title is the official racing game of the FIA World Endurance Championship.
“We have been very happy with the response to our very public desire to seek further investment in the company and after comprehensive talks with Pimax, we are delighted to conclude their investment in Motorsport Games,” said Stephen Hood, CEO of Motorsport Games.
“We are excited to have Pimax as partners and believe that it represents excellent value to shareholders as we solidify the company’s financial position to give greater confidence in our ability to excel.”
The financial situation of Motorsport Games has been a hot topic of conversation in the sim racing sector. The publisher had the rights to develop a game for single-seater series IndyCar but the agreement was terminated after the publisher struggled with payments.
What’s Next for Motorsport Games?
For Motorsport Games, this recent investment opens the door for the publisher to provide VR offerings within Le Mans Ultimate. The racing simulator is expected to release fully in 2025.
Alongside Le Mans Ultimate, the publisher is also responsible for racing sims rFactor 2 and Kartkraft.
