Nasdaq to Delist Stocks of Elys Game Technology Company
Gaming technology provider Elys Game Technology (NASDAQ: ELYS) revealed on Monday that their common stocks will be removed from the Nasdaq Stock Market next Tuesday, October 17. The decision was made by the Nasdaq Hearings Panel. This announcement comes as their stocks have struggled to maintain a closing bid price of $1 per share for the past eight months.
Elys' stocks have not met the required Minimum Bid Price Requirement specified by the Nasdaq Listing Rule 5550(a)(2). As a result, the panel has chosen to delist the company's stocks from the Nasdaq exchange. The delisting will be completed by filing a Form 25 Notification of Delisting with the U.S Securities and Exchange Commission (SEC).
The company spends around $1.6 million each year to maintain their listing on NASDAQ.
What Happens to Elys Game Stock After Delisting
Elys is a tech provider catering to the gaming industry. They provide sports betting kiosks to businesses like bars and eateries that hold licenses to offer sports betting activities to their customers. The company might appeal the decision, but they haven't clarified their plans yet. The stock ended Monday at 41 cents and hasn't closed at $1 for almost eight months, pointing towards a potential reverse split to regain compliance with the stock exchange rules.
Here is a statement released by Elys: "The Company's evaluation will consider various factors, including the board's assessment of the likelihood of the Company regaining and maintaining compliance with the continued listing requirements through a reverse stock split. Additionally, the evaluation will also examine the benefits of staying listed on Nasdaq compared to the substantial costs, including the significant time and resources spent on complying with the ongoing listing requirements."
After the delisting, Elys Game will trade in the over-the-counter (OTC) market under the same ticker symbol. However, these stocks typically have small or no following among institutional investors.
Elys Game's Size
Elys is a Canadian firm with a current market cap of $15.91 million. Although the stock has climbed more than 46% this year, it appears not many professional investors are actively interested in the shares.
Despite multiple setbacks, the company has a partnership with Italy's Lottomatica. Moreover, they don't have large debt obligations like most gaming operators, granting them an advantage. Elys also plans to keep providing investor updates despite leaving the stock market. Their statement further reads, "The Company intends to continue providing information to its stockholders and to take actions in its control to ensure a trading market for its common stock on the Pink Sheets or another OTC market." However, there's no guarantee that a broker will keep quoting the stock or that trading will occur.
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Source: www.casino.org
