Enthusiast Gaming Holdings, a gaming media and entertainment company based in Los Angeles, has announced its plans to delist from the Nasdaq Stock Market and solely trade on the Toronto Stock Exchange. The company aims to reduce costs by making this strategic shift.
The decision to voluntarily delist from the Nasdaq was made after Enthusiast Gaming received an extension in May to meet the Nasdaq’s minimum bid price requirement. However, upon careful consideration, the company determined that delisting would be a more appropriate course of action.
Enthusiast Gaming’s stock has experienced a decline of approximately 45% in 2023 and closed at 31 cents on the Nasdaq on Friday. Over the past year, the stock has fallen by more than 58%.
One of the key factors behind the decision to delist is the burden of maintaining a dual-listing. Enthusiast Gaming estimates that it currently incurs over $2 million in annual costs for this purpose, foreseeing further increases due to rising compliance and regulatory requirements in the coming years.
“The relatively high insurance, listing, reporting, legal and compliance costs that are associated with a continued U.S. stock exchange listing, as well as the administrative burdens and requirements associated with maintaining a dual listing, are not justified at this time,” stated Enthusiast Gaming.
The company anticipates that its final day of trading on the Nasdaq will be around Nov. 9.
January 3rd, 2023