Enthusiast Gaming Holdings, the Los Angeles-based gaming media and entertainment firm, announced today its decision to voluntarily delist from the Nasdaq Stock Market. The company stated it will concentrate its efforts solely on the Toronto Stock Exchange. This announcement comes after a challenging year for the firm, with its stock experiencing a significant 45% drop in 2023.
The company's final trading day on the Nasdaq is anticipated to be around November 9, according to Adriano Marchese. Despite an extension granted in May to meet Nasdaq's minimum bid price requirement, Enthusiast Gaming saw its stocks continue to struggle, closing at a mere 31 cents on Nasdaq. The past year marked an even more drastic decrease for the company's stock, with a reduction of 58%.
Enthusiast Gaming cited increasing regulatory demands and administrative burdens as key reasons behind their decision. Dual-listing costs the firm over $2 million annually, a sum expected to rise due to these growing challenges. As such, the company deemed the expenses and administrative difficulties associated with maintaining a U.S. stock exchange listing unjustified. The move to focus exclusively on the Toronto Stock Exchange is seen as a strategic step to mitigate these issues.
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