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The Malta-based esports firm completed the corporate action as a part of its effort to uplist its common stock to the NASDAQ Capital Market.
A senior US exchange may soon become the new home of an esports wagering company after the completion of a reverse stock split.
Esports Entertainment Group (OTCQB:GMBLD) confirmed that it successfully completed the stock merge on Thursday (February 6) after beginning to trade on a post-split basis in late January.
The corporate action on the part of the Malta-based online gambling firm was done as a part of its efforts to uplist its common stock to the NASDAQ Capital Market.
After 20 days, the “D” from the company’s ticker will be removed, reverting to the original tag “GMBL.”
A reverse stock split is a financial process in which shares of a company are merged into a smaller amount of proportionately more valuable shares.
For Esports Entertainment, the action was completed to get its share price up to the NASDAQ’s requirements, which mandate that a firm’s common stock must be US$4 or more at the time of listing.
Every 15 shares of the company’s issued and outstanding common stock will be compiled into a single share, leaving the total number of authorized shares unchanged.
The reverse split represents a crucial landmark for Esports Entertainment, CEO Grant Johnson said in a press release.
“We expect a NASDAQ listing will generate even greater interest in our company from the broader national and international investment community, as well as potential partners in the esports as a result of our transparency,” the executive added.
The firm did note, however, that there’s no guarantee that it will satisfy other requirements or that it will secure a spot on the US bourse.
Other requirements to list on the NASDAQ Capital Market include having at least 1 million unrestricted publicly held shares and at least 300 unrestricted lot round shareholders.
Esports Entertainment began its journey to the NASDAQ in 2019, when it first applied to list on the senior exchange in June.
At the time, Johnson boasted that the firm’s bevy of partnerships in the esports world would help to solidify its efforts to get to the major exchange.
“Given the tremendous progress of our esports betting platform, including partnering with more than 190 esports teams from around the world, we believe the Company is now well positioned to pursue additional growth opportunities,” Johnson said.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.