Elys Game Technology set to be suspended from Nasdaq
B2B supplier has stated its common shares have been suspended from trading for falling below the $1 minimum closing bid price
Elys Game Technology has announced that its common shares will be suspended from trading on the Nasdaq at the opening of trading today (October 17).
The move comes after the supplier’s stock failed to maintain a minimum closing bid of $1 per share, which is required as per Nasdaq’s rules.
Once the appeal period has expired, Nasdaq will also file the relevant form with the US Securities and Exchange Commission (SEC) to have the firm delisted.
Following the announcement that its stock will be delisted, Elys’ share price fell by 66% in after-hours trading.
Elys has begun the process of transitioning its stock to an over-the-counter market.
Elys has yet to decide whether to appeal the decision of Nasdaq, and the firm has 15 days from when the delisting letter was sent (October 13) to decide whether to appeal.
Before any appeal is filed, the firm will evaluate a number of factors, such as if the decision was warranted and whether the board’s assessment as to the likelihood of the company regaining and maintaining compliance with the continued listing requirements.
In its release, Elys said: “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.”
The supplier estimated that its expenses related to maintaining its Nasdaq listing is approximately $1.6m annually. The firm noted that these expenses are “expected to rise significantly” in the future due to compliance requirements of the Sarbanes-Oxley Act and ESG initiatives.
It added: “In anticipation of realising substantial cost savings, the company sees opportunities to streamline operations through delisting and deregistration.
“These benefits include lower operating costs, reduced management time commitment to compliance and reporting activities, and a simplified corporate governance structure.
“The decision to appeal Nasdaq’s decision will be consistent with the company’s previously announced cost-saving measures. The company acknowledges that the delisting and cessation of trading on Nasdaq could have a material adverse effect on the liquidity and trading price of its common shares,” the supplier concluded.