eSports operator, Esports Entertainment Group, or EEG, is continuing to list on the Nasdaq stock exchange despite the threat of delisting in February of next year. To avoid delisting, the operator has drastically increased its share price in order to keep in line with a host of compliance requirements.
By 7 February 2023, the operator must have a minimum bid price of $1.00 for a period of ten consecutive days in order to meet the Panel’s compliance criteria. As of writing, EEG trades at $0.12 per share, which means it has less than two months to increase the company’s share price by more than eight times its current value.
Plus, it has to do it with the addition of showing evidence that it has a minimum of $2.5 million in stockholder equity by March 31st.
All of this comes amidst the rumour of an EEG CEO change.
According to iGamingBusiness: “Esports Entertainment Group has faced a turbulent time in recent years, with brand closures, a debt default, and large operating losses. In May, within the business’s quarterly financial report, EEG said that there was “substantial doubt about its ability to continue as a going concern for a least one year.’”
And in November this was followed by SportNation and RedZone announcing that they would be shutting their brands in the UK market, saying: “SportNation and RedZone are closing for a variety of reasons including the economics of operating a small iGaming business in the UK market”.
