Motorsport Games Says On Oct. 26, BARC Limited Delivered Notice To Co. Terminating License Agreement Dated May 29, 2020

Author: Benzinga Newsdesk | November 06, 2023 06:23pm

On October 26, 2023, BARC (TOCA) Limited ("BARC"), the exclusive promoter of the British Touring Car Championship (the "BTCC"), delivered notice to Motorsport Games Inc. (the "Company") terminating the license agreement, dated May 29, 2020, by and between BARC and the Company (the "BTCC License Agreement"). The termination of the BTCC License Agreement was effective as of November 3, 2023. Pursuant to the BTCC License Agreement, the Company had been granted an exclusive license to use certain licensed intellectual property for motorsports and/or racing video gaming products related to, themed as, or containing the BTCC, on consoles and mobile applications, esports series and esports events. BTCC's decision to terminate the BTCC License Agreement was due to the Company not satisfying certain of its obligations under the BTCC License Agreement, including the release and sale of BTCC gaming and esports products within two years of the effective date off the BTCC License Agreement and the payment of certain royalties, including certain minimum annual guarantees. Following the termination of the BTCC License Agreement, all outstanding royalties payable and other sums payable by the Company to BARC, became due and payable. As of the date of this Current Report on Form 8-K, approximately $0.8 million was due to BARC.

Posted In: MSGM