Esports Entertainment (NASDAQ:GMBL) stock is a hot topic among traders on Wednesday after the company announced plans to voluntarily delist its shares from the Nasdaq.
Esports Entertainment said this action was approved by its Board of Directors in an effort to reduce the costs of maintaining a listing on the exchange. This comes as the company seeks to be more profitable.
However, that doesn’t mean shares of GMBL stock are going to disappear completely. Instead, the company is changing its listing to the OTCQB Venture Market. Esports Entertainment says it will continue to list here until the time comes when it seeks to relist its shares on a senior U.S. exchange.
Here’s what Esports Entertainment CEO Alex Igelman said about the news:
“The expenses related to maintaining our Nasdaq listing are significant, and, despite our listing on a senior U.S. exchange, we do not believe the current market price reflects the intrinsic value of our business. At the moment, we are 100% focused on driving growth and profitability and believe that this move to the OTC Markets will allow us to regroup as we execute on the aforementioned initiatives.”
GMBL Stock Movement Today
News of the delisting has shares of GMBL stock down 15.9% as of Wednesday morning. Investors will also note that shares are down 59.1% since the start of the year.
Despite the delisting news and falling share price, there isn’t much trading of GMBL stock today. As of this writing, around 171,000 shares have changed hands. The company’s daily average trading volume is about 782,000 shares.
There are even more stock market stories traders are going to want to know about on Wednesday!
Fortunately, we have all of the latest stock market news today ready to go! A few examples include a downgrade for Palantir (NYSE:PLTR) stock, the $1 trillion reason why Marathon Digital (NASDAQ:MARA) stock is up today and what’s happening with Quantum (NASDAQ:QMCO) stock this morning. You can read up on all of these topics at the following links!
More Stock Market News for Wednesday
- HSBC Is Souring on Palantir (PLTR) Stock
- The $1 Trillion Reason Marathon Digital (MARA) Stock Is Up Today
- Why Is Quantum (QMCO) Stock Down 5% Today?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
