ST. JULIAN'S, Malta - Esports Entertainment Group, Inc. (OTCQB: GMBL), a company specializing in esports and iGaming, announced today its decision to deregister its securities and suspend its reporting obligations with the U.S. Securities and Exchange Commission (SEC). The company filed a Form 15 to effectuate the suspension of its duty to file periodic reports, including Forms 10-K, 10-Q, and 8-K, which is expected to take immediate effect.
The deregistration follows the company's recent voluntary delisting from the Nasdaq Stock Exchange and is part of a strategy to reduce the complexity and costs associated with public reporting. Esports Entertainment Group anticipates that the deregistration will become effective within 90 days, ceasing its status as a public reporting company. This change, however, does not affect the company's business operations.
Esports Entertainment Group operates globally, with a focus on esports wagering and providing business-to-business esports solutions in the United States. The company manages an esports venue system and offers wagering through its suite of brands licensed by the Malta Gaming Authority (MGA). It aims to leverage its industry position to capitalize on the multi-billion-dollar esports and wagering markets.
The information disclosed is based on a press release statement.
In other recent news, Esports Entertainment Group has made a significant change in its financial oversight. The company's Board of Directors and Audit Committee have decided to dismiss Marcum LLP, their previous independent registered public accounting firm. This decision was made despite the absence of any disagreements on accounting principles, practices, financial statement disclosure, or auditing scope during the last two fiscal years.
The company has appointed TAAD LLP as its new independent registered public accounting firm for the fiscal year ending June 30, 2024. This change was made in compliance with Securities and Exchange Commission regulations and has been detailed in the company's Form 8-K filing.
These are recent developments for Esports Entertainment Group.
InvestingPro Insights
As Esports Entertainment Group (OTCQB: GMBL) navigates the complex transition away from being a publicly reporting company, investors may seek additional metrics to gauge the current financial health and future prospects of the firm. According to InvestingPro data, Esports Entertainment Group has a market capitalization of just $0.58M, reflecting the market's scaled-back valuation of the company. The gross profit margin stands out at an impressive 67.89% for the last twelve months as of Q3 2024, highlighting the company's ability to maintain profitability on its services despite broader challenges.
However, the financial landscape is not without its concerns. The company has experienced a significant revenue decline of 69.38% over the same period, which aligns with the concerns from InvestingPro Tips that analysts anticipate a sales decline in the current year. Furthermore, the price of Esports Entertainment Group's stock has been marked by high volatility and a steep decline, as evidenced by a 99.88% drop in its 1-year price total return, which may deter risk-averse investors.
For investors who are considering the current valuation of Esports Entertainment Group, the InvestingPro Fair Value estimate stands at $0.67, providing a potential reference point against the previous close price of $0.51. This suggests that despite recent hardships, there may be an undervaluation according to InvestingPro's metrics. Investors looking for deeper insights into Esports Entertainment Group's financials and market performance can find additional InvestingPro Tips, with 15 more tips available at https://uk.investing.com/pro/GMBL. To enhance your investment analysis, use the coupon code UK10 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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