Motorsport Games Inc. (NASDAQ: MSGM) announced it repurchased 904,395 shares of Class A Common Stock from Driven Lifestyle Group LLC at $4.11 per share, according to a press release statement. The price represents the average of the five-day closing price on the date of execution.

The racing game developer said the transaction coincides with corporate governance changes. The company retired all Class B shares, which previously carried 10x voting advantage, establishing equal voting rights for all shareholders. Shareholders also approved an increase in awards available under the employee equity plan.

"This share repurchase is a direct reflection of how far Motorsport Games has come," said Stephen Hood, President and Chief Executive Officer. "Our strengthened financial position has given us the ability to act, returning greater ownership and strategic influence to the Company and ultimately to the benefit of all shareholders."

Hood noted that Driven Lifestyle elected to retain a minority shareholding in the company following the transaction.

The company develops and publishes racing games for motorsport series including the 24 Hours of Le Mans and FIA World Endurance Championship. Motorsport Games owns the rFactor 2 and KartKraft simulation platforms and recently released Le Mans Ultimate Version 1.3.

Hood stated that Le Mans Ultimate continues to drive engagement levels and RaceControl is growing with recurring subscription revenue while supporting online gameplay.