Allied Esports receives letter from Nasdaq over non-compliance
Esports entertainment company Allied Esports has received a warning from Nasdaq regarding instances of non-compliance.
The notification: The company is currently listed as AESE on the stock exchange.
- Allied Esports confirmed on May 23 that it had received a letter from Nasdaq on May 19 explaining that it no longer complies with the stock exchange's rules.
- More specifically, Nasdaq has ruled that the company is defying listing rule 5250(c)(1) which requires companies on the exchange to file all financial reports with the Securities and Exchange Commission (SEC) on time.
- At the time of publication, Allied Esports has yet to file its financial reports for the three-month periods ending December 31, 2021 and March 31, 2022.
- Allied operates a network of owned and partnered esports properties across several continents, including the HyperX Esports Arena in Las Vegas. The company describes itself as the "experts of esports entertainment" on its website.
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What's next? Allied Esports has to tread carefully.
- The esports company now has until June 20, 2022 to submit its plan to regain compliance with Nasdaq.
- Should the plan be accepted then Allied Esports may be granted up to 180 days from the filing's due date to comply once again. The company states that it plans to file its report for the period ending December 31, 2021 after the market closes on May 25, though it didn't mention the expected filing date for the following (and most recent) period.
- On another note, the company's auditors want to verify information pertaining to its operations of the World Poker Tour prior to its sale to complete the filing. It sold WPT to Element Partners in July 2021 for $78.25M, citing "COVID-19's impact on the company's overall revenue generation and profitability timeline" as a good reason for the transaction, meaning it could do with the extra capital.