SharpLink NASDAQ Listing Threatened by Compliance Strikeout

In an update provided by SharpLink, a leading sports betting affiliate company, the firm informed that it has received a noncompliance notice from NASDAQ, citing an issue with Listing Rule 5550(a)(2) which demands companies to maintain a minimum bid price of $1 per share.

SharpLink Braces for Recovery of NASDAQ Compliance

SharpLink’s trading price stood at $0.59 per share at the time of the company’s update. NASDAQ has now given SharpLink time to try and rally in the coming months, as it faces two important deadlines. The stock dipped below the $1 threshold on May 24 but has not been able to recover ever since.

Trading under the SBET ticker, the stock has mostly held well through the year, soaring above $1, but then started to inch downwards steadily over the past months. As of closing time on July 17, the stock was trading at $0.65.

The company said that it had received a noncompliance letter from NASDAQ on July 11. NASDAQ usually allows for a 180-day correction window for non-compliant companies to mend a situation.

This means that SharpLink has until January 7 to increase its stock price and to avoid delisting, it would need to maintain a $1 share price for 10 consecutive days. SharpLink is not looking to delist either, as it wants to remain a publicly traded company.

Long Road to Walk, SharpLink Not Letting Up

Delisting from the NASDAQ is a long-winded process and can take up to a year. The first deadline set for January is going to then be extended with another six-month period during which SharpLink would have the opportunity to try and win public trust again, providing it can prove it has a worthwhile product (it does) and that it has acclaim among peers (it has).

Only then, if the second deadline has not been met, will NASDAQ commence a delisting procedure. SharpLink is also a well-established entity in the industry it operates in, meaning that NASDAQ has no reason to try and shorten the period or call for immediate delisting.

The company is part of the affiliate marketing network PAS dot net, which is another well-established entity.

SharpLink has also exuded confidence in a forward-looking statement to NASDAQ, arguing that its offer, products and services have immense room and potential for growth, although the company has not detailed a plan on how it will proceed from this point on.