Esports Entertainment delisting from Nasdaq, moving to OTCQB Venture Market

Esports Entertainment Group announced that its board of directors has approved a voluntary delisting of the company’s Common Stock, 10.0% Series A Cumulative Redeemable Convertible Preferred Stock and Common Warrants from the Nasdaq Stock Market, which is expected to reduce the company’s public costs as it advances its strategy to drive growth and profitability. As a result, the company anticipates that it will file with the Securities and Exchange Commission a Form 25 relating to the delisting of its Securities and expects its Securities will be listed on the OTCQB Venture Market of the OTC Markets, until such time it decides to reapply and is approved to relist on a senior U.S. Exchange. On February 13, when the company informed the Nasdaq of its intention to delist it was under a Nasdaq Panel Monitor and not in compliance with the Nasdaq’s stockholders’ equity requirement. Alex Igelman, CEO of Esports Entertainment Group, stated, “While we have solid assets inside the business, and have assembled a first-class management and board, the restructuring and turnaround of the business has been no small undertaking. Although we have made substantial and rapid progress, we have several more significant initiatives still underway. At the same time, the expenses related to maintaining our Nasdaq listing are significant, and, despite our listing on a senior U.S. exchange, we do not believe the current market price reflects the intrinsic value of our business. At the moment, we are 100% focused on driving growth and profitability and believe that this move to the OTC Markets will allow us to regroup as we execute on the aforementioned initiatives. In this way, assuming we meet the listing requirements, we could relist on a senior U.S. Exchange at a time of our choosing. In the meantime, we plan to reallocate resources towards activities, some of which we have previously identified, that we believe will generate the highest return on capital and maximum long-term value for our shareholders.”