Operator Esports Entertainment Group (EEG) will remain listed on the Nasdaq stock exchange, but will have to dramatically increase its share price to avoid delisting in February.
The Esports Entertainment Group said that on November 30, the Nasdaq Hearing Panel approved EEG’s application to continue listing on the exchange, subject to a variety of compliance requirements.
By February 7, 2023, the Company must have a minimum bid price of $1.00 (£0.82/€0.95) for a period of ten consecutive days to meet the Panel’s compliance criteria.
At the market close on December 5, Esports Entertainment Group was trading at $0.12 per share. That means EEG has less than two months to increase the company’s stock price by more than eight times to be considered compliant.
In addition, the company must provide evidence that it has at least $2.5 million in equity by March 31, 2023. The company currently has a market cap of $8.6 million.
In addition, the EEG must meet a number of other conditions and requirements that have not yet been publicly announced.
Reported change in Esports Entertainment Group CEO
According to the Sharpr newsletterThe board of Esports Entertainment Group has asked long-time CEO Grant Johnson to resign. Although the operator has not officially confirmed Johnson’s departure, Sharpr noted that emails to his former company address are now not being delivered.
Esports Entertainment Group has experienced a turbulent time in recent years, with brand closures, a debt default and large operating losses. In May, within the company quarterly financial reportEEG said there was “significant doubt” about its ability to continue operations for at least a year.
In October, the group said it was effectively at the mercy of an unnamed creditor after the company defaulted on its debts.
This was followed in November by news that the company would be closing its RedZone and Sport Nation brands in the UK market.
SportNation and RedZone both said the sites were closing “for various reasons, including the economics of operating a small iGaming business in the UK market”.