EGLX stock slammed after voluntary Nasdaq delisting

Shares of Enthusiast Gaming (Enthusiast Gaming Stock Quote, Chart,News, Analysts, Financials TSX:EGLX) are sliding today after the company announced it would voluntarily delist is shares from the Nasdaq.

The move comes after the Listing Qualifications department of the U.S. exchange, on May 4, granted the company a 180 day extension to comply with its bid-price rule. The company said it had subsequently “evaluated the benefits and costs of continuing its listing on Nasdaq” and decided to voluntarily delist.

Nasdaq Listing Rule 5550(a)(2) mandates that a company’s common stock must maintain a minimum closing bid price of $1.00 per share to remain listed on the Nasdaq stock exchange. If a company’s stock closes below the $1.00 minimum bid price for 30 consecutive business days, it will receive a deficiency notice from Nasdaq.

The news comes on the heels of EGLX announcing it had increased its credit facilities from $5-million to $7.5-million, and had earned the right to increase said facility by an additional $2.5-million.

“This new financing strengthens our financial position with up to $7-million of additional liquidity over the coming months as we execute on our business plans and target our goal of profitability in Q4 2023. We appreciate the long-standing support and partnership of our lender which serves as a vote of confidence in the quality of our assets and strategy,” said CEO Nick Brien.

At press time, shares of Enthusiast Gaming were down 13.1 per cent to $0.365.