Esports Entertainment Group avoids delisting despite rumoured CEO departure

Esports Entertainment Group (EEG) will remain listed on the Nasdaq stock exchange, but its share price must skyrocket in order to avoid delisting in February.

According to Esports Entertainment Group, the Nasdaq Hearing Panel authorised EEG's plea to continue listing on the exchange on November 30, subject to a slew of compliance criteria.

To achieve the Panel's compliance criteria, the company must have a minimum bid price of $1.00 (£0.82/ €0.95) for ten consecutive days by 7 February 2023.

Esports Entertainment Group is trading at $0.12 per share as of the market closing on December 5th. This indicates that EEG will have fewer than two months to more than eightfold the company's share price in order to be considered in compliance.

Furthermore, by March 31, 2023, the corporation must demonstrate that it has a minimum of $2.5 million in stockholder equity. The company's current market capitalisation is $8.6 million.

EEG will also have to meet a number of other rules and standards that have not yet been made public.

The CEO of Esports Entertainment Group has reportedly changed.

According to the Sharpr newsletter, the board of directors of Esports Entertainment Group has urged long-time CEO Grant Johnson to leave. While the operator has not formally announced Johnson's departure, Sharpr has noticed that emails sent to Johnson's former corporate address are now returned as undeliverable.

Esports Entertainment Group has had a difficult few years, with brand closures, a debt default, and significant operating losses. In its quarterly financial report in May, EEG stated that there was "serious question regarding its capacity to continue as a going concern for at least one year."

After the company defaulted on its loan, the organisation said in October that it was effectively at the mercy of an undisclosed creditor.

Following this, the company announced in November that it will close its RedZone and Sport Nation brands in the UK market.

Both SportNation and RedZone announced that they were “closing for a variety of reasons including the economics of operating a small igaming business in the UK market”.

By fLEXI tEAM