It vaults the share price above NASDAQ’s $4 minimum price requirement for companies to list on its exchange
Esports Entertainment Group Inc (OTCMKTS:GMBLD) announced after the close Thursday that the company underwent a 15:1 reverse stock split in late January, designed to boost its share price ahead of a potential application to list on the NASDAQ.
After the split, the esports gaming and wagering company began trading under the temporary ticker symbol GMBLD on January 27. The ticker will revert to GMBL, 20 business days after that date.
The reason for the reverse split, the company says, was to vault the share price above Nasdaq’s $4 minimum price requirement for companies to list on its exchange. As a result of the move, every 15 shares of common stock will be converted into one share.
Shares closed Thursday at $5.81.
“This reverse split is another major step forward in our long-term strategic growth plan, which includes listing our common stock on a major US exchange,” CEO Grant Johnson said in a statement. “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 esports as a result of our transparency.”
The Malta-based company specified that even though it now would clear the minimum price requirement to list on the exchange, that doesn’t guarantee that it would meet other NASDAQ requirements or that an application for listing would be approved.
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