Omnichannel game supplier and operator Elys Game Technology has announced that it will be de-listing today from the Nasdaq stock market.
Elys reported that it had received, on the 13th of October from the Listing Qualifications Department at Nasdaq a letter informing them their shares will be suspended as of today.
The stock of the company was below the minimum $1.00 price required for the listing regulations. The hearing panel decided to remove the company from the exchange’s listing rules because the stock price was below the $1.00 minimum required by the regulations.
Elys stated that it is “carefully considering” whether or not to appeal. Elys has 15 days to decide, so it will have to make a decision by the 28th of October.
The evaluation of the company will include multiple factors. This will include whether the company can regain compliance and continue to do so. Elys stated that it may be able achieve this by implementing a reverse split.
This assessment, according to the business owner, will include a general cost-benefit evaluation of Nasdaq listings. The assessment will include a number of expenses, such as the time spent by management in dealing with compliance.
Elys estimates its Nasdaq listings expenses at approximately $1.6m per year (PS1.32m/EUR1.52m). The company also stated that these costs are expected to increase significantly due to ESG and new requirements.
The business then said that it saw “opportunities to streamline its operations through delisting or deregistration”.
The business said that “These benefits are lower operating costs and reduced time spent by management on compliance and reporting, as well as a simpler corporate governance structure.”
It also admitted that the delisting of shares could negatively impact on their liquidity and value.
E lys is facing delisting despite its recent announcement to launch online and mobile gambling brand SportBet.com.
This is the first project to be undertaken by itself in this country after a series of joint ventures.
The exact jurisdictions in which the product will go live are not yet known. The business has stated that it plans to expand into several markets. The business will achieve this through direct licensing agreements and market access in Q4.
