Elys said it received a letter from the Listing Qualifications department of the Nasdaq on 13 October, informing it its shares would be suspended from today.
This is a result of the business’ stock remaining below the $1.00 minimum price as required by the exchange’s listing rules. As such, the hearings panel made the decision to de-list the business.
Elys said it was “carefully evaluating” whether to appeal the decision. The company has a 15-day deadline, meaning it must decide by 28 October.
It added its evaluation will take in multiple factors. These will include the likelihood the company will be able to regain and maintain compliance with the listing requirements. Elys said it might be able to achieve this through a reverse stock split.
The business added this assessment will also look at a cost-benefit analysis of Nasdaq listing in general. This will look at a variety of costs, including the amount of time management spend dealing with the compliance requirements.
Elys estimated its Nasdaq listing expenses stand at around $1.6m (£1.32m/€1.52m) per year. It added that it believed these expenses are to rise significantly in future due to new requirements and ESG initiatives.
Subsequently, the business said it “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,” said the business.
The company also acknowledged that de-listing could have an adverse effect on the liquidity and price of its shares.
SportBet.com brand launch
The news thatE lys faces de-listing comes despite the recent announcement that it would be launching online and mobile betting brand SportBet.com in the US.
The venture marks the first solo sports betting project in the country following a number of partnerships.
It is not clear exactly what jurisdictions the offering will be live in. However the business said it expects to expand its footprint into multiple markets. This will be accomplished through direct licensing and market access agreements in Q4.