October 17, 2023 3 min read

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Elys Game Technology Faces Delisting from Nasdaq

The company’s shares have maintained a price below $1 for roughly eight months, prompting a delisting ruling by the Nasdaq Hearings Panel

Elys Game Technology, a gaming technology provider listed on the Nasdaq under the ticker symbol ELYS, will likely be delisted as the company’s common stock did not maintain the minimum closing bid price required by Nasdaq Listing Rule 5550(a)(2). Elys’ management is now evaluating various options to regain compliance with listing requirements.

Share Prices Remain Low despite Recent Successes

Elys Game Technology provides technology solutions primarily targeting the sports betting vertical. It offers wagering kiosks to businesses, such as bars and restaurants licensed to offer sports betting to customers. A recent expansion saw the company power a high-profile retail sportsbook at Santa Claran Casino Resort in New Mexico.

An agreement with leading Italian sportsbook Lottomatica presents significant growth opportunities outside the USA, giving the supplier access to a thriving European jurisdiction. Unlike many other companies in the sector, Elys remains relatively debt-free, giving it a stable platform for future expansion. However, these positive factors did not sufficiently bolster investor confidence.

Despite a 46% year-to-date share price increase, Elys’ market capitalization remains just $15.91 million. The company’s shares closed at only 41 cents on Monday and hadn’t reached the $1 threshold for the past eight months. Elys is considering a reverse split to remedy the situation, but such a move would not resolve the supplier’s underlying challenges.

The Company Is Carefully considering Its Options

Elys has not yet decided whether to appeal the Nasdaq delisting decision or proceed with the proposed reverse stock split to meet listing requirements. The company noted it would thoroughly investigate the benefits of remaining on Nasdaq. Maintaining the listing incurs additional annual expenses of approximately $1.6 million, including substantial time and resources to retain compliance.

The Company’s evaluation will take into account various factors, including the… likelihood of the Company regaining and maintaining compliance with the continued listing requirements.

Elys Game Technology official statement

Although losing the Nasdaq listing would significantly hurt the company’s prestige, it still has other avenues to ensure a trading market for its common stock. Elys noted it was considering utilizing another OTC market like Pink Sheets to continue providing information to its stockholders but did not commit to a specific course of action.

The recent listing woes have dampened Elys’ winning streak but should not significantly impact the supplier’s short-term plans. The company recently revealed its US-Facing Online and Mobile Sports Betting Brand, building on its successful collaboration with regulated casinos and sportsbooks. Sustainable growth remains a priority for the company as it evaluates its options and chooses the best long-term solution for its recent troubles.

Deyan is an experienced writer, analyst, and seeker of forbidden lore. He has approximate knowledge about many things, which he is always willing to apply when researching and preparing his articles. With a degree in Copy-editing and Proofreading, Deyan is able to ensure that his work writing for GamblingNews is always up to scratch.

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