Malta-based, publicly traded Esports Entertainment Group (NASDAQ: GMBL, GMBLP) announced this week that its Board of Directors has approved a voluntary delisting of the company’s common stock from the Nasdaq Stock Market.
In a release, the company noted that “On Feb. 13, 2024, when the Company informed the Nasdaq of its intention to delist, it was under a Nasdaq Panel Monitor and not in compliance with the Nasdaq’s stockholders’ equity requirement.”
“While we have solid assets inside the business, and have assembled a first-class management and board, the restructuring and turnaround of the business has been no small undertaking,” said Alex Igelman, CEO of Esports Entertainment Group, in a release Wednesday. “Although we have made substantial and rapid progress, we have several more significant initiatives still underway. At the same time, the expenses related to maintaining our Nasdaq listing are significant, and, despite our listing on a senior U.S. exchange, we do not believe the current market price reflects the intrinsic value of our business. At the moment, we are 100% focused on driving growth and profitability and believe that this move to the OTC Markets will allow us to regroup as we execute on the aforementioned initiatives. In this way, assuming we meet the listing requirements, we could relist on a senior U.S. Exchange at a time of our choosing. In the meantime, we plan to reallocate resources towards activities, some of which we have previously identified, that we believe will generate the highest return on capital and maximum long-term value for our shareholders.”
The company also announced that it anticipates filing Form 25 with the Securities and Exchange Commission (SEC) related to the delisting and expects to be listed on the OTCQB Venture Market of the OTC Markets, “until such time it decides to reapply and is approved to relist on a senior U.S. Exchange.”
Esports Entertainment Group is a Malta Gaming Authority (MGA) licensed business-to-business (B2B) and business-to-consumer (B2C) esports content and solutions provider. The company used to be more involved in the intersection of esports and gambling, but has divested/discontinued a number of those assets over the last several years.