Elys Game Technology is set to be delisted from the Nasdaq Stock Exchange due to its share price failing to meet the minimum requirements.
The gaming technology provider notified shareholders that it received notice from the Listing Qualifications Department for the Nasdaq Stock Market that it will be delisted as of today.
This, the body stated, is because Elys stock failed to maintain the minimum required $1 closing bid price, which is against Nasdaq regulations. Following these revelations, Nasdaq wrote to Elys noting that it should be suspended from trading as of today (17 October).
Elys has the right to appeal the decision and has 15 days to lodge its appeal before the Nasdaq decision is final. The firm explained it will “carefully consider” its options and analyze the landscape before making any firm decision.
The firm has cited rising costs as a key challenge, with the annual $1.6m fees only set to rise further in the coming years.
A statement read: “The Company is currently carefully evaluating whether such an appeal of Nasdaq’s decision is warranted. The Company’s evaluation will take into account 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 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.”
Nevertheless, Elys has initiated a process to transfer the quotation of its outstanding common stock to an over-the-counter market, which is not expected to materially impact its day-to-day operations.
The statement added: “The Company intends to continue providing information to its stockholders and taking actions within its control to facilitate the quoting of its common stock on the Pink Sheets or another OTC market, thereby ensuring the existence of a trading market for its common stock.
“However, there is no guarantee that a broker will continue to make a market in the common stock or that trading of the common stock will continue on an OTC market or elsewhere.”
