MINNEAPOLIS - SharpLink Gaming Ltd. (NASDAQ:SBET), known as SharpLink Israel, announced today the completion of its corporate restructure and jurisdiction change from Israel to Delaware, a move that was finalized through a merger agreement with SharpLink Gaming, Inc., also known as SharpLink US. This strategic shift, which took effect today, follows the approval from shareholders at a meeting on December 6, 2023.
Under the terms of the merger, SharpLink Merger Sub Ltd., a subsidiary of SharpLink US, has merged with SharpLink Israel, positioning the latter as a wholly owned subsidiary of SharpLink US. As a result of the merger, all shares and derivative securities of SharpLink Israel have been converted to equivalent securities of SharpLink US. The company's common stock will continue to trade on the Nasdaq Capital Market under the ticker symbol SBET from February 14, 2024, with a new CUSIP number 820014108.
Concurrent with the merger, several board members of SharpLink Israel and SharpLink US have stepped down. The reshuffled board now includes Rob Phythian, CEO of SharpLink US, as the new Chairman, and Adrienne Anderson, who will chair the Audit Committee and serve on the Compensation Committee. The board welcomes Obie McKenzie and Leslie Bernhard as independent directors, with McKenzie also chairing the Compensation Committee and Bernhard joining both the Audit and Compensation Committees.
McKenzie brings a wealth of experience from his tenure at organizations like Cordiant Capital and BlackRock Inc (NYSE:BLK)., and his recognition in the investment management industry. Bernhard's background includes leadership roles at companies such as Nexalin Technology, Inc., Sachem Capital (NYSE:SACH) Corp., and Milestone Scientific (NYSE:MLSS) Inc.
Phythian expressed gratitude to the former board members for their dedication and highlighted the significance of the merger as part of SharpLink's strategic initiatives, which included the sale of its fantasy sports business, debt retirement, and compliance with Nasdaq listing standards. The company aims to focus on performance marketing for the sports betting and casino gaming industries.
The information in this article is based on a press release.
InvestingPro Insights
In light of SharpLink Gaming Ltd.'s recent corporate restructuring and strategic shift, it is crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, SharpLink Gaming Ltd. (NASDAQ:SBET) holds a market capitalization of 3.41 million USD as of Q1 2023. Despite significant revenue growth of 152.96% in Q3 2023, the company's operating income margin was reported at -85.42%, indicating challenges in translating top-line growth into operational profitability.
Furthermore, the stock has experienced substantial price volatility, a key factor for investors to consider. The InvestingPro Tips highlight that SBET's stock generally trades with high price volatility and has fared poorly over the last month, with a total return of -25.62%. Additionally, the company's short-term obligations exceed its liquid assets, which may raise concerns about liquidity and financial stability in the near term.
Investors looking to delve deeper into SharpLink Gaming's financial metrics and strategic outlook can find additional insights on InvestingPro. There are 10 more InvestingPro Tips available, providing a comprehensive analysis of the company's financial health and stock performance. To access these valuable tips, visit: https://www.investing.com/pro/SBET. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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