MINNEAPOLIS - SharpLink Gaming, Inc. (NASDAQ:SBET), a marketing partner to sportsbooks and online casino operators, has received a notification from Nasdaq Listing Qualifications that its stock is currently not meeting the minimum bid price requirement. The notice, dated July 11, 2024, states that the company's shares have fallen below the $1.00 minimum bid price per share as stipulated by the Nasdaq Listing Rule 5550(a)(2).
The company now has a 180-day period, until January 7, 2025, to regain compliance with Nasdaq's minimum bid price rule. Compliance can be achieved if SharpLink's common stock's closing bid price is at least $1.00 for at least ten consecutive business days within this timeframe. Should SharpLink meet this criterion, it will receive written confirmation of compliance from Nasdaq, and the matter will be considered resolved.
Still, if SharpLink fails to regain compliance within the initial 180-day period, it may be eligible for an additional 180-day grace period, provided it meets all other initial listing standards for The Nasdaq Capital Market, barring the bid price requirement. During these grace periods, SharpLink’s common stock will continue to trade on The Nasdaq Capital Market under the ticker "SBET."
The current situation does not immediately affect the listing or trading of SharpLink's common stock. The company is recognized for its affiliate marketing network PAS.net, which has garnered industry accolades as a top affiliate website and program in the European online gambling sector for four years running.
This press release also contains forward-looking statements regarding the company's potential growth and the benefits of its products and services. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
SharpLink has not provided any plan of action in response to the Nasdaq notification at this time. The information presented here is based on a press release statement from SharpLink Gaming, Inc.
In other recent news, SharpLink Gaming, Inc. has entered into a new warrant agreement with Alpha Capital Anstalt, as revealed in an SEC Form 8-K filing. This agreement, replacing the Warrant Repurchase Balance from a previous settlement, allows Alpha Capital to purchase additional shares.
This development follows a Settlement Agreement reached after the sale of a substantial portion of SharpLink's assets, which deferred the Warrant Repurchase until certain conditions were met. SharpLink and Alpha later modified their arrangement through an Exchange Agreement, with Alpha receiving common stock, a pre-funded warrant, and a Warrant Repurchase Balance valued at $260,111.
Under the latest Exchange Agreement No. 2, Alpha exchanged the remaining Warrant Repurchase Balance for a new warrant to purchase 254,233 shares of SharpLink’s common stock at a nominal strike price. This agreement terminates the Warrant Repurchase Balance and associated obligations. This recent development potentially strengthens SharpLink's capital structure and provides a clearer path for future operations and growth initiatives.
InvestingPro Insights
SharpLink Gaming, Inc. (NASDAQ:SBET) is facing challenges with its stock price, and the latest data from InvestingPro underscores some of the financial metrics that investors may be considering. With a market capitalization of just $1.98 million, the company is relatively small, which can often lead to higher volatility in its stock price. This is reflected in the recent performance, with a significant 27.54% drop in the price total return over the past month, and an even steeper 54.97% decline over the last three months.
On the upside, SharpLink holds more cash than debt on its balance sheet, which is a positive sign for investors concerned about the company's financial stability. Moreover, despite the company's recent price performance, it has a Price / Book ratio of 0.7 for the last twelve months as of Q1 2024, which may suggest that the stock is undervalued relative to its assets. Still, the company's significant cash burn and the lack of profitability over the last twelve months are factors that investors should consider carefully.
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