Sports-betting affiliate SharpLink informed investors this morning that it was out of compliance for Nasdaq listing. According to Listing Rule 5550(a)(2), securities must maintain a minimum bid price of $1 per share.
SharpLink was trading at $0.59 per share at the time of the announcement. SharpLink shares fell below the $1 threshold on May 24 and haven’t recovered; the Minneapolis-based company received a notice of noncompliance on July 11.
The company nominally has 180 days to correct the deficiency. The deadline for doing so is next January 7. In order to do so, its share price must meet or exceed $1 for 10 consecutive business days.
Even if SharpLink doesn’t meet that threshold, it will not automatically be delisted. It will have another six months to regain compliance “if it meets the continued listing requirements for market value of publicly held shares and all other initial listing standards,” according to the company, provided it supplies Nasdaq with written avowal of intent to cure its deficiency.
If the second deadline isn’t met, the securities become subject to delisting. SharpLink continues to trade under the ticker symbol SBET, the Nasdaq letter having no immediate ramifications.
SharpLink describes itself as a “marketing partner to leading sportsbooks and online casino gaming operators worldwide … driving qualified traffic and player acquisitions, retention and conversions to U.S. regulated and global igaming operator partners worldwide.”
