Enthusiast Gaming Holdings Inc. has announced its plan to voluntarily delist from the Nasdaq exchange, following a significant drop in its stock value during 2023. The Los Angeles-based company's shares have seen a steep 45% slump this year, closing at 31 cents, in addition to a 58% decrease over the past year.
The firm has communicated to Nasdaq that it expects trading to cease by November 9, as it opts to trade exclusively on the Toronto Stock Exchange (TSX). This decision comes in light of mounting annual costs exceeding $2 million and administrative challenges associated with maintaining a dual listing, which includes insurance, listing, reporting, legal and compliance expenses.
The company foresees these costs escalating due to increasing regulatory requirements. By withdrawing from Nasdaq, Enthusiast Gaming aims to achieve substantial cost savings. The firm considers the expenses tied to sustaining a dual listing as unjustifiable in the current economic climate.
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