Elys Game Technology De-Lists from Nasdaq

Elys Game Technology, a well-known player in the gaming industry, has found itself in hot water with the Nasdaq Stock Market. The company recently received a letter from the Nasdaq Listing Qualifications Department on October 13, stating that its shares would be suspended with immediate effect. This drastic measure is a consequence of Elys' stock price consistently falling below the required minimum of $1.00, as mandated by the exchange's listing regulations. Consequently, the Nasdaq Hearings Panel has made the tough call to de-list the company.

In response to this dire situation, Elys Game Technology is carefully considering whether to challenge the Nasdaq's decision. The company is granted a 15-day window to make this pivotal choice, which means they must come to a conclusion by October 28. Elys' evaluation will encompass various critical factors, such as the probability of the company regaining and sustaining compliance with the listing prerequisites. Elys has hinted at the possibility of achieving this through a reverse stock split.

Elys' assessment will also delve into a cost-benefit analysis of being listed on Nasdaq in general. This comprehensive analysis will weigh multiple costs, including the substantial time and effort management expends on compliance-related matters. The company has calculated its annual Nasdaq listing expenses at approximately $1.6 million. Elys anticipates that these expenses could significantly escalate in the future due to new requirements and ESG (Environmental, Social, and Governance) initiatives.

Elys acknowledges that there are potential benefits to be gained from de-listing and deregistration. These advantages include reduced operating costs, a decrease in the management's time commitment to compliance and reporting activities, and the establishment of a simpler corporate governance structure. However, the company is also aware that the de-listing could negatively impact the liquidity and share price of its stocks.

Remarkably, this development comes on the heels of Elys Game Technology's announcement that it would be launching a new online and mobile betting brand in the United States – SportBet.com. This marks Elys' first independent venture in the U.S. sports betting market, following a series of partnerships. Although the specific jurisdictions where SportBet.com will operate remain undisclosed, Elys anticipates an expansion into multiple markets through direct licensing and market access agreements in the fourth quarter.