Elys Game Technology, a provider of gaming technology, disclosed on Monday that its common stock will be delisted from the Nasdaq Stock Market, effective Tuesday, Oct. 17. This proceeding follows a ruling by the Nasdaq Hearings Panel. The stock, which has languished below $1 per share for roughly eight months, fell short of meeting the Nasdaq Listing Rule 5550(a)(2) which mandates a minimum closing bid price of $1.00 per share.
In a statement released late Monday, Elys clarified that the company’s shares were set for delisting as a formal consequence of violating this provision, and the Nasdaq would finalize the delisting process by filing a Form 25 Notification of Delisting with the U.S. Securities and Exchange Commission (SEC) once the designated opportunity for appeal had passed.
Elys, while primarily known as a tech firm, also sits alongside sports betting equities due to its provision of betting kiosks for permit-granting sporting bars and eateries. The spectre of appeal against the delisting looms, but as the shares last closed at 41 cents and have not peaked above a dollar in the last eight months, a reverse split may possibly be the next step for regaining compliance with listing regulations.
The decision-making process will weigh various elements, including the chance of re-establishing the listing requirements and the significant associated costs, the latter explored in depth by management.
Despite the Nasdaq exit, Elys will carry on trading over-the-counter using its current ticker symbol. Still, over-the-counter stocks are not traditionally favored by institutional investors, typically amassing smaller followings.
Concluding today with a market capitalization of a mere $15.91 million, Canada-based Elys has yet to gain substantial attention from professional investors despite an impressive 46% year-to-date increase in its stock value.
Elys, however, has demonstrated a certain geographic diversity through its strategic partnership with Italy’s Lottomatica and, quite notably, is devoid of cumbersome debt obligations that often burden other gaming operators. The company has assured its investor base of ongoing updates despite its departure from the Nasdaq.
Elys also stipulated its intention to persist in supplying relevant information to its stockholders while concurrently exploring options to maintain the trading of its common stock within an OTC market or the Pink Sheets. Nevertheless, the company warned there is no certainty that brokerages will continue to facilitate a market for its common stock or that its common stock trading will endure within an OTC market or alternative platform.
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