Esports Entertainment Group Shifts to OTC Markets

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Esports Entertainment Group, Inc. (NASDAQ: GMBL) has announced a voluntary delisting from the Nasdaq Stock Market, with plans to transfer its Common Stock, 10.0% Series A Cumulative Redeemable Convertible Preferred Stock, and Common Warrants to the OTCQB® Venture Market of the OTC Markets. The decision, approved by the Board of Directors, is aimed at reducing public costs and advancing the company's strategy for growth and profitability.

The Company intends to file a Form 25 with the Securities and Exchange Commission related to the delisting. The move to the OTCQB® Venture Market is expected to be temporary, providing Esports Entertainment Group the flexibility to regroup and focus on ongoing initiatives. The company, led by CEO Alex Igelman, emphasized the significant progress made in restructuring and turning the business around. However, it noted that expenses associated with maintaining the Nasdaq listing were substantial, and the current market price did not reflect the intrinsic value of the business.

Igelman stated, "We are 100% focused on driving growth and profitability, and we believe that this move to the OTC Markets will allow us to reallocate resources towards activities that generate the highest return on capital and maximum long-term value for our shareholders. The decision to delist is seen as a strategic step, enabling the company to execute its initiatives while potentially relisting on a senior U.S. Exchange at a time of its choosing, assuming all listing requirements are met."