Motorsport Games stock pulls back after equity sale follows 14-fold surge in 2 days

Shares of Motorsport Games Inc.
MSGM,
-37.95%
tumbled 22.1% in premarket trading Thursday, after the Florida-based racing game developer and esports ecosystem company is taking advantage of a 14-fold spike higher in two days to sell stock. The company announced an agreement is issue and sell 144,366 shares $23.50 a share, in a direct offering, for proceeds of $3.39 million. The offering comes after the stock skyrocketed 1,307% in two days, to close Wednesday at a one-year high of $37.00, up from Monday’s close of $2.63. The rally comes after the company said it regained full compliance with Nasdaq listing requirement. The stock has now gained 8.2% over the past 12 months while the S&P 500
SPX,
+1.47%
has lost 10.2%.