Elys Game Technology has announced that its common shares will be suspended from the NASDAQ stock market as of the opening of business today (Tuesday 17 October).
The American stock exchange will also seek to finalise a delisting by filing a relevant form with the US Securities and Exchange Commission, which will follow the expiration of relevant appeal periods.
This came after the company’s common stock failed to maintain a minimum closing bid price of $1 per share, which is required by Nasdaq listing rule. Subsequently, Elys has begun the process of transitioning the quotation of its stock to an over-the-counter market.
The gaming and sports betting technology firm, whose share price continued to slide through the opening of the week following this news, has not yet decided whether to appeal the decision.
This must be submitted within 15 days from the date of a delisting letter that was received on October 13, 2023. However, a company evaluation will determine factors such as if the decision is warranted, and the board’s assessment of the likelihood of the company regaining and maintaining compliance with the continued listing requirements.
“Additionally, the evaluation will encompass an analysis of the benefits of continuing to list on Nasdaq compared to the substantial costs, including the extensive commitment of management’s time and resources for complying with various listing requirements,” Elys noted in a media release.
It is expected that a $1.6m annual hit to expenses will be felt regarding the NASDAQ listing, which, Elys said, is “expected to rise significantly” during the coming year.
“In anticipation of realising substantial cost savings, the company sees opportunities to streamline operations through delisting and deregistration,” it was added.
“These benefits include lower operating costs, reduced management time commitment to compliance and reporting activities, and a simplified corporate governance structure.
“The decision to appeal Nasdaq’s decision will be consistent with the company’s previously announced cost-saving measures. The Company acknowledges that the delisting and cessation of trading on Nasdaq could have a material adverse effect on the liquidity and trading price of its common shares.”
