Gaming Technology Provider Elys Faces Removal From NASDAQ

Article by : Erik Gibbs Oct 19, 2023

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Elys Game Technology, a gaming technology provider listed on the NASDAQ under the ticker symbol ELYS, is facing potential delisting due to its common stock failing to maintain the minimum closing bid price required by NASDAQ Listing Rule 5550(a)(2).

This situation has arisen as the company’s shares have consistently traded below $1 for approximately eight months, resulting in a delisting ruling by the NASDAQ Hearings Panel.

In response, Elys’ management is currently exploring various options to regain compliance with the listing requirements.

Elys Game Technology primarily offers technology solutions for the sports betting sector, including wagering kiosks for establishments like bars and restaurants licensed to provide sports betting services to their customers.

Notably, the company expanded its operations by powering a prominent retail sportsbook at the Santa Claran Casino Resort in New Mexico.

Additionally, an agreement with the leading Italian sportsbook Lottomatica has opened up substantial growth opportunities beyond the USA, enabling Elys to tap into a thriving European jurisdiction.

Despite these positive developments, Elys’ market capitalization stands at just $15.91 million, even after a 46% year-to-date increase in share prices. On Monday, the company’s shares closed at a mere 41 cents and have failed to reach the $1 threshold for the past eight months.

To address this issue, Elys is contemplating a reverse split, but it is important to note that this measure may not resolve the fundamental challenges the company faces.

Elys is currently in the process of determining whether to challenge the NASDAQ’s delisting decision or move forward with the proposed reverse stock split to meet listing requirements.

The company has expressed its intent to conduct a comprehensive assessment of the advantages associated with maintaining its NASDAQ listing.

This decision holds significance due to the additional annual costs, totaling around $1.6 million, as well as the substantial time and resources required to ensure compliance.

While losing its NASDAQ listing would undoubtedly impact the company’s reputation, Elys remains open to exploring alternative avenues to provide a trading market for its common stock.

Elys has stated that it is contemplating the possibility of utilizing another OTC market, such as Pink Sheets, to continue offering information to its stockholders. However, it has not committed to a specific course of action.

Although recent listing challenges have posed a setback, they are not expected to significantly affect the company’s short-term plans.

Elys has recently introduced its US-Facing Online and Mobile Sports Betting Brand, building on its successful partnerships with regulated casinos and sportsbooks.

The company continues to prioritize sustainable growth as it evaluates its options and selects the best long-term solution for its recent difficulties.