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Elys Game Technology Reports Third Quarter 2023 Business and Financial Results

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NEW YORK, Nov. 20, 2023 (GLOBE NEWSWIRE) — Elys Game Technology, Corp. (“Elys” or the “Company”) (OTC:ELYS) (BER:3UW), an interactive gaming and sports betting technology company, today provided a business update and reported financial results for the third quarter ended September 30, 2023.

Third Quarter and Recent Operational Highlights

  • Established a multiyear market access agreement with Caesars Entertainment, unlocking access to the Colorado sports betting market. The strategic agreement signals Elys’ first entry into the North American mobile sports betting landscape. Pending regulatory approvals, the Company expects to launch its U.S. mobile sportsbook operations in Colorado in 2024.
  • Introduced www.SportBet.com, the Company’s new online and mobile sports betting brand for the United States market. The “5D by Elys” mobile app is included under the brand, forming a comprehensive sports betting platform with cross-platform compatibility. This development positions Elys’ online sports betting launch under a highly recognizable, consumer-friendly brand.
  • Completed installation of its North American hub infrastructure, successfully establishing a robust technology footprint for the expansion of Elys’ platform.
  • Multigioco, an Elys subsidiary, unveiled its enhanced offerings in Italy with a revamped online casino, sports betting site, and mobile app. The significant relaunch in the Italian market improves player experience with optimized performance, speed, and a robust security profile while also setting the stage for meaningful cost savings by eliminating expenses associated with trading and risk management, platform development, and iGaming aggregation.
  • Secured a third sportsbook location in Washington, D.C., expanding the Company’s footprint in the city and building upon the success of its small business sportsbook business model.

Third Quarter 2023 Financial Results
Results compare 2023 fiscal third quarter end (September 30, 2023) to 2022 fiscal third quarter end (September 30, 2022) unless otherwise indicated.

  • Total revenue decreased 11.8% to $8.5 million from $9.6 million in the prior year. The change is primarily attributable to higher payouts benefiting Elys’ sportsbook customers as well as a decrease in web-based turnover due to a reduction in online casino and poker offerings during the third quarter, thereby reducing our blended revenue conversion. At the end of September 2023, a historically quiet period for sports betting, the Company underwent a platform switchover that provides significantly enhanced online casino and poker offerings for our Italian operations. The switchover had an immaterial impact on online sportsbook revenue that was partially offset by an increase in land-based sportsbook revenue due to the activation of new physical locations. For the first nine months of 2023, total revenue increased by approximately $0.06 million.
  • Total handle (turnover) decreased 2.4% to $162.6 million from $166.5 million in the prior year period. The decrease in handle in the third quarter was due to the reduction in web-based turnover caused by the aforementioned online casino and poker reduction ahead of the platform switchover. For the first nine months of 2023, the total handle increased 2.4% to $585.8 million consistent with the Company’s growth expectations.
  • Operating expenses decreased 10.2% to $11.4 million from $12.7 million in the prior year period. The change is primarily attributable to decreases in general and administrative costs as well as a reduction in technology development costs. For the first nine months of 2023, overall operating costs continued to downtrend, with a reduction of $0.13 million, reflecting management’s commitment to profitability, despite the additional expenses incurred for U.S. and Canadian facing investments during the first nine months of 2023.
  • Net loss from continuing operations was $(3.2) million, or $(0.10) per share, compared to $(3.8) million, or $(0.14) per share, in the prior year period. The change is primarily attributable to the decrease in loss from operations, despite lower revenues and a reduction in other non-operating expenses of $0.3 million compared to the prior year period. For the first nine months of 2023, net loss was $(9.1) million, or $(0.27) per share, compared to $(11.1) million, or $(0.41) per share, in the prior year period.
  • Cash and cash equivalents were $2.6 million at September 30, 2023, compared to $3.4 million at December 31, 2022.

Management Commentary
“In Q3, we laid critical foundations for a large-scale expansion into the rapidly growing online sports betting market in the United States and Canada,” said Mike Ciavarella, Executive Chairman of Elys Game Technology Corp. “Over the past few years, we have executed our go-to-market strategy by making significant investments related to our product platform and infrastructure development for our future commercial operations in North America. Elys now stands at the inflection point where these investments begin to convert into revenues in 2024.

“Our www.SportBet.com website, complemented by our advanced platform and recent market access partnership with Caesars Entertainment, equips us to attract players nationwide over the coming quarters. The impending launch in Colorado serves as our initial online sports betting market entry point, and we regard our partnership with Caesars as a gateway to future opportunities in other states. At the same time, we are maintaining our solid and stable operations in the Italian market, where we recently introduced a revamped platform and all-new product lineup. This platform not only enhances the overall player experience but also incorporates changes that significantly reduce expenses and puts our Multigioco subsidiary on track to meet the Company’s profit goals through 2024.

“As we begin our strategic rollout into the vast addressable online sports betting market in the United States, we are confident in our ability to replicate our Italian success story. The U.S. sports betting opportunity contains decades of pent-up demand, and we expect to carve out significant market share with our ‘best odds’ approach and user-friendly platform as our experience in Italy demonstrates. Our measured and strategic approach to this vast market sets us apart. Through meticulous study of player behavior and regulatory dynamics, we aim to emerge as a responsible and formidable operator in the budding U.S. market, extracting long-term value for Elys shareholders.”

Update on the Listing of Common Shares
On October 13, 2023, Elys Game Technology received written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) informing the Company that trading of its common shares would be suspended as of the opening of business on October 17, 2023. As a result, Elys’ common shares began trading on the OTC markets in October, where they continue to trade today.

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To prioritize the value for its shareholders, the Company will remain listed on the OTC Markets until further analysis of the exchange listing of our common shares is completed. Elys’ management team and board of directors are diligently assessing various major listing venues to determine the most strategic path forward, one that will ultimately offer the best opportunity to maximize shareholder value in the long term.

About Elys Game Technology, Corp.
Elys Game Technology, Corp. is a global gaming technology company operating in multiple countries worldwide. Elys offers its clients a full suite of omnichannel leisure gaming products and services, such as online sports betting, e-sports, virtual sports, online casino, poker, bingo, interactive games, and online slots on a B2C basis in Italy and has B2B operations in five states as well as the District of Columbia in the U.S. market. The Company provides sports betting software, online casino software, services for commercial and tribal casinos, retail betting establishments, and franchise distribution networks.

Elys’ vision is to become a global gaming industry leader by developing pioneering and innovative online casino software. Additional information is available on our corporate website at www.elysgame.com.

Investors may also find us on Twitter @ELYS5D; Instagram @elys5d; LinkedIn Elys America; YouTube @Elys5D; and on Facebook @Elys5D.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project,” and similar expressions that are intended to identify forward-looking statements and include statements regarding Elys. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and its subsequent filings with the U.S. Securities and Exchange Commission, including subsequent periodic reports on Form 10-Q and current reports on Form 8-K. The information in this release is provided only as of the date of this release. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events, except as required by law.

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Investor Contact:
Tom Colton and Alec Wilson
Gateway Group, Inc.
949-574-3860
[email protected]

-Financial Tables to Follow-

ELYS GAME TECHNOLOGY, CORP.
Consolidated Balance Sheets
(Unaudited)
 
    September 30,
2023
  December 31,
2022
Current Assets                
Cash and cash equivalents   $ 2,551,000     $ 3,400,166  
Accounts receivable     735,725       731,962  
Gaming accounts receivable     1,841,921       1,431,497  
Prepaid expenses     2,637,882       900,205  
Related party receivable     22,511       22,511  
Other current assets     379,781       338,871  
Total Current Assets     8,168,820       6,825,212  
                 
Non – Current Assets                
Restricted cash           364,701  
Property and equipment     975,211       610,852  
Right of use assets     1,471,190       1,498,703  
Intangible assets     10,069,843       10,375,524  
Goodwill     1,662,016       1,662,278  
Marketable securities           19,999  
Total Non – Current Assets     14,178,260       14,532,057  
Total Assets   $ 22,347,080     $ 21,357,269  
                 
Current Liabilities                
Accounts payable and accrued liabilities   $ 8,917,952       6,790,523  
Gaming accounts payable     3,492,128       2,213,532  
Taxes payable     61,187       179,720  
Related party payable     46,916       422,129  
Promissory notes payable – related parties     411,939       752,000  
Operating lease liability     381,439       369,043  
Financial lease liability     1,895       6,831  
Bank loan payable – current portion     2,987       3,151  
Total Current Liabilities     13,316,443       10,736,929  
                 
Non-Current Liabilities                
Deferred tax liability     1,391,102       1,696,638  
Operating lease liability     1,059,970       1,157,979  
Financial lease liability     1,244       2,288  
Bank loan payable     152,643       148,169  
Convertible notes payable, net of discount of $169,003     209,347        
Convertible notes payable – related parties, net of discount of $2,039,673     2,936,049        
Other long-term liabilities     577,725       464,851  
Total Non – Current Liabilities     6,328,080       3,469,925  
Total Liabilities     19,644,523       14,206,854  
                 
Stockholders’ Equity                
Common stock, $0.0001 par value, 80,000,000 shares authorized; 35,794,381 and 30,360,810 shares issued and outstanding as of September 30, 2023 and December 31, 2022     3,579       3,036  
Additional paid-in capital     78,952,510       74,249,244  
Accumulated other comprehensive loss     (609,554 )     (600,619 )
Accumulated deficit     (75,643,978 )     (66,501,246 )
Total Stockholders’ Equity     2,702,557       7,150,415  
Total Liabilities and Stockholders’ Equity   $ 22,347,080     $ 21,357,269  

 

ELYS GAME TECHNOLOGY, CORP.
Consolidated Statements of Changes in Stockholders’ Equity
Nine months ended September 30, 2023 and September 30, 2022
(Unaudited) 
                                 
    For the Three Months Ended
September 30,
  For the Nine Months Ended
September 30,
    2023   2022   2023   2022
Revenue   $ 8,464,591     $ 9,591,294     $ 32,233,378     $ 32,175,015  
                                 
Costs and Expenses                                
Selling expenses     6,724,275       6,874,581       26,158,349       24,029,532  
General and administrative expenses     4,318,720       5,385,407       13,498,145       14,273,817  
Depreciation and amortization     354,334       423,361       1,043,432       1,315,593  
Restructuring and severance expenses                       1,205,689  
Total Costs and Expenses     11,397,329       12,683,349       40,699,926       40,824,631  
                                 
Loss from Operations     (2,932,738 )     (3,092,055 )     (8,466,548 )     (8,649,616 )
                                 
Other (Expenses) Income                                
Interest expense, net of interest income     (162,474 )     (9,104 )     (273,701 )     (22,641 )
Amortization of debt discount     (142,381 )           (215,651 )      
Other income     9,994       21,931       13,521       90,783  
Changes in fair value of contingent purchase consideration           (482,059 )           (1,397,833 )
Other expense           (45,528 )     (7,017 )     (56,539 )
Gain (loss) on marketable securities           (49,250 )     (19,999 )     43,250  
Total Other (Expenses) Income     (294,861 )     (564,010 )     (502,847 )     (1,342,980 )
                                 
Loss Before Income Taxes     (3,227,599 )     (3,656,065 )     (8,969,395 )     (9,992,596 )
Income tax provision     4,240       (167,574 )     67,199       (200,518 )
Net Loss from continuing operations     (3,223,359 )     (3,823,639 )     (8,902,196 )     (10,193,114 )
                                 
Discontinued operations                                
Operating loss     (34,690 )           (198,335 )      
Loss on recission     (42,201 )           (42,201 )      
Net loss from discontinued operations     (76,891 )           (240,536 )      
                                 
Net loss   $ (3,300,250 )   $ (3,823,639 )   $ (9,142,732 )   $ (10,193,114 )
                                 
Other Comprehensive (Loss) Income                                
Foreign currency translation adjustment     (102,111 )     (367,765 )     (8,935 )     (877,996 )
                                 
Comprehensive Loss   $ (3,402,361 )   $ (4,191,404 )   $ (9,151,667 )   $ (11,071,110 )
                                 
Loss per common share – basic and diluted                                
Continuing operations   $ (0.10 )   $ (0.14 )   $ (0.27 )   $ (0.41 )
Discontinued operations     (0.00 )     0.00       (0.00 )     0.00  
      (0.10 )     (0.14 )     (0.27 )     (0.41 )
Weighted average number of common shares outstanding – basic and diluted     31,886,832       26,942,389       32,758,530       24,871,319  

 ELYS GAME TECHNOLOGY, CORP.
Consolidated Statements of Cash Flows
(Unaudited)
         
    For the nine months
ended September 30,
    2023   2022
         
Net Loss   $ (9,142,732 )   $ (10,193,114 )
Net loss from discontinued operations     240,536        
Net loss from continuing operations     (8,902,196 )     (10,193,114 )
Adjustments to reconcile net loss to net cash used in operating activities                
Depreciation and amortization     1,043,431       1,315,593  
Gain on disposal of property and equipment     (5,136 )      
Amortization of debt discount     215,651        
Restricted stock awards     685,688       2,012,600  
Stock-based compensation expense     1,611,635       2,381,974  
Non-cash interest     268,320       17,637  
Loss on dissolution of subsidiary     325        
Change in fair value of contingent purchase consideration           1,397,833  
Unrealized loss (gain) on marketable securities     19,999       (43,250 )
Movement in deferred taxation     (124,437 )     (238,616 )
Changes in Operating Assets and Liabilities, net of assets acquired and liabilities assumed                
Prepaid expenses     (1,757,254 )     (2,043,015 )
Accounts payable and accrued liabilities     1,307,024       (1,013,194 )
Accounts receivable     1,957       (282,002 )
Gaming accounts receivable     (440,090 )     981,478  
Gaming accounts liabilities     1,339,804       693,455  
Taxes payable     (122,333 )     391,339  
Due from related parties     31,279       (8,026 )
Other current assets     (39,764 )     (19,838 )
Long term liability     122,022       76,916  
Net Cash Used in Operating Activities – continuing operations     (4,744,075 )     (4,572,230 )
Net Cash Used in Operating Activities – discontinued operations     (76,697 )      
NET CASH USED IN OPERATING ACTIVITIES     (4,820,772 )     (4,572,230 )
                 
Cash Flows from Investing Activities                
Acquisition of property and equipment and intangible assets     (1,112,830 )     (355,939 )
Net Cash Used in Investing Activities – continuing operations     (1,112,830 )     (355,939 )
Net Cash Provided by Investing Activities – discontinued operations     76,459        
NET CASH USED IN INVESTING ACTIVITIES     (1,036,371 )     (355,939 )
                 
Cash Flows from Financing Activities                
Proceeds from convertible notes     350,000        
Proceeds from convertible notes, related parties     4,400,000        
Proceeds from Subscriptions – Net of Fees           2,616,679  
Proceeds from pre-funded warrants           512,813  
Proceeds from related party promissory notes           665,000  
Repayment of bank overdraft           (7,043 )
Repayment of bank loan           (33,041 )
Repayment of financial leases     (5,996 )     (5,926 )
NET CASH PROVIDED BY FINANCING ACTIVITIES     4,744,004       3,748,482  
                 
Effect of change in exchange rate     (100,728 )     (1,504,030 )
                 
Net decrease in cash     (1,213,867 )     (2,683,717 )
Cash, cash equivalents and restricted cash – beginning of the period     3,764,867       7,706,357  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – END OF THE PERIOD   $ 2,551,000     $ 5,022,640  
                 

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ELYS GAME TECHNOLOGY, CORP.

Consolidated Statements of Cash Flows
(Unaudited)

                 
Reconciliation of cash, cash equivalents and restricted cash within the Balance Sheets to the Statement of Cash Flows                
Cash and cash equivalents   $ 2,551,000     $ 4,690,034  
Restricted cash included in non-current assets           332,606  
    $ 2,551,000     $ 5,022,640  

Supplemental disclosure of cash flow information        
Cash paid during the period for:        
Interest   $ 5,735     $ 5,855  
Income tax   $ 199,745     $ 84,988  
                 
Supplemental cash flow disclosure for non-cash activities                
Fair value of common stock issued on acquisition of Engage IT Services Srl   $ 1,735,615     $  
Fair value of common stock returned on recission of acquisition of Engage IT Services Srl   $ (1,938,456 )        
Fair value of warrant issued with convertible debt   $ 2,424,327     $  
Fair value of restricted stock issued to settle liabilities   $ 60,000     $  
Fair value of options issued to settle liabilities   $ 125,000     $  

Berlin:3UW

Elys Game Technology Provides Call Coordinates for 2023 Annual Meeting of Stockholders

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NEW YORK, Nov. 08, 2023 (GLOBE NEWSWIRE) — Elys Game Technology, Corp. (“Elys” or the “Company”) (OTC:ELYS) (BER:3UW), an interactive gaming and sports betting technology company, provides an update for its 2023 Annual Meeting of Stockholders to be held at the Company’s corporate head office at Suite 701, 130 Adelaide St. W., Toronto, Ontario, Canada M5H 2K4 on Thursday, November 9, 2023 at 10:00 a.m. Eastern time (the “Meeting”).

Due to continuing concerns over the transmission COVID-19 infections, Elys intends to take precautions for social distancing for those that attend the Meeting in person. The Company urges all shareholders to vote by proxy in advance of the Meeting at www.proxyvote.com by entering the code provided with the proxy materials. For those who cannot attend the Meeting, they can listen to the Meeting through the live conference call coordinates as follows:

Conference Call Dial-In Information:

Canada and US: 1-833-353-8610
Italy, Austria, U.K. and Switzerland: 00 800 0066 8888 (Includes San Marino & Vatican City)

Participant Code: 3739385 #

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Participants should dial in approximately 5 to 10 minutes prior to the scheduled start time. Registered Shareholders or duly appointed proxyholders who will attend the Meeting will be permitted to vote at the Meeting. Those listening by telephone will not be able to vote.

About Elys Game Technology, Corp.
Elys Game Technology, Corp. is a global gaming technology company operating in multiple countries worldwide. Elys offers its clients a full suite of omnichannel leisure gaming products and services, such as online sports betting, e-sports, virtual sports, online casino, poker, bingo, interactive games, and online slots on a B2C basis in Italy and has B2B operations in five states as well as the District of Columbia in the U.S. market. The Company provides sports betting software, online casino software, services for commercial and tribal casinos, retail betting establishments, and franchise distribution networks.

Elys’ vision is to become a global leader in the gaming industry through the development of pioneering and innovative online casino software. Additional information is available on our corporate website at www.elysgame.com.

Investors may also find us on Twitter @ELYS5D; Instagram @elys5d; LinkedIn Elys America; YouTube @Elys5D; and on Facebook @Elys5D.

Investor Contact:
Tom Colton and Alec Wilson
Gateway Group, Inc.
949-574-3860
[email protected]

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Elys Game Technology Secures Multiyear Market Access Agreement with Caesars Entertainment Commencing in Colorado

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NEW YORK, NY, Nov. 07, 2023 (GLOBE NEWSWIRE) — Elys Game Technology, Corp. (“Elys” or the “Company”) (OTC:ELYS) (BER:3UW), an interactive gaming and sports betting technology company, today announced a market access agreement with Caesars Entertainment that unlocks immediate access to the lucrative Colorado sports betting market. This strategic agreement signals Elys’ first entry into the North American mobile sports betting landscape.

With the introduction of the Company’s “5D by Elys” mobile app under the recently unveiled SportBet.com brand, the Company presents a comprehensive sports betting platform enriched with advanced features and seamless cross-platform compatibility. This agreement potentially positions Elys for a strategic launch of its North American online sports betting aspirations.

“We are focused on converting recent investments in technology and infrastructure into revenue-generating business in the United States. Our meticulous market analysis, conducted before our entry into the U.S. B2C online segment, has allowed us to create an effective go-to-market strategy along with a cutting-edge product that we believe will be rapidly adopted by North American sports bettors,” said Mike Ciavarella, Executive Chairman of Elys Game Technology Corp. “We look forward to bringing our unique mobile sports betting experience to U.S. customers through our market access agreement with Caesars Entertainment.”

While the commencement of online operations is contingent upon pending regulatory approvals, the agreement with Caesars Entertainment allows Elys to launch its online sportsbook operations in Colorado. Elys intends to expand its market position by offering its new “5D by Elys” mobile app to sports bettors across multiple states through future market access partnerships. This initial agreement empowers Elys to deliver a personalized and captivating gaming experience, firmly establishing its leadership in the industry.

About Elys Game Technology, Corp.
Elys Game Technology, Corp. is a global gaming technology company operating in multiple countries worldwide. Elys offers its clients a full suite of omnichannel leisure gaming products and services, such as online sports betting, e-sports, virtual sports, online casino, poker, bingo, interactive games, and online slots on a B2C basis in Italy and has B2B operations in five states as well as the District of Columbia in the U.S. market. The Company provides sports betting software, online casino software, services for commercial and tribal casinos, retail betting establishments, and franchise distribution networks.

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Elys’ vision is to become a global leader in the gaming industry through the development of pioneering and innovative online casino software. Additional information is available on our corporate website at www.elysgame.com.

Investors may also find us on Twitter @ELYS5D; Instagram @elys5d; LinkedIn Elys America; YouTube @Elys5D; and on Facebook @Elys5D.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project,” and similar expressions that are intended to identify forward-looking statements and include statements regarding Elys. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and its subsequent filings with the U.S. Securities and Exchange Commission, including subsequent periodic reports on Form 10-Q and current reports on Form 8-K. The information in this release is provided only as of the date of this release, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events, except as required by law.

Investor Contact:
Tom Colton and Alec Wilson
Gateway Group, Inc.
949-574-3860
[email protected]

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Berlin:3UW

Elys Game Technology Announces Decision of Nasdaq Hearings Panel To Delist Common Shares

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NEW YORK, Oct. 16, 2023 (GLOBE NEWSWIRE) — Elys Game Technology, Corp. (“Elys” or the “Company”) (Nasdaq: ELYS) (BER:3UW), an interactive gaming and sports betting technology company, today announced that on October 13, 2023, the Company received written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that trading of its common shares will be suspended as of the opening of business on October 17th, 2023 (the “Delisting Letter”).

The Company’s common stock did not maintain a minimum closing bid price of $1.00 (“Minimum Bid Price Requirement”) per share as required by Nasdaq Listing Rule 5550(a)(2). Accordingly, the Nasdaq Hearings Panel has determined to delist the Company’s shares from Nasdaq. Nasdaq will complete the delisting by filing a Form 25 Notification of Delisting with the U.S. Securities and Exchange Commission (“SEC”), following the expiration of relevant appeal periods.

The Delisting Letter provides that the Company may request the Nasdaq Listing and Hearing Review Council to review the delisting decision within 15 days from the date of the Delisting Letter. The Company is currently carefully evaluating whether such an appeal of Nasdaq’s decision is warranted. The Company’s evaluation will take into account various factors, including the board’s assessment of the likelihood of the Company regaining and maintaining compliance with the continued listing requirements, through a reverse stock split. Additionally, the evaluation will encompass an analysis of the benefits of continuing to list on Nasdaq compared to the substantial costs, including the extensive commitment of management’s time and resources for complying with various listing requirements.

The Company estimates that its expenses related to maintaining its Nasdaq listing are approximately $1.6 million annually. These expenses are expected to rise significantly in the coming years due to the compliance requirements of the Sarbanes-Oxley Act (SOX) and ESG initiatives, among others. In anticipation of realizing substantial cost savings, the Company sees opportunities to streamline operations through delisting and deregistration. These benefits include lower operating costs, reduced management time commitment to compliance and reporting activities, and a simplified corporate governance structure. The decision to appeal Nasdaq’s decision will be consistent with the Company’s previously announced cost-saving measures. The Company acknowledges that the delisting and cessation of trading on Nasdaq could have a material adverse effect on the liquidity and trading price of its common shares.

The Company has initiated the process of transferring the quotation of its common stock to one of the over-the-counter markets operated by OTC Markets Group Inc. The shares of the Company’s common stock will continue to trade under the symbol “ELYS.”

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The transition to the OTC markets will not alter the Company’s commitment to continue operating as usual. The Company will remain subject to the public reporting requirements of the SEC post-transfer. The Company intends to continue providing information to its stockholders and taking actions within its control to facilitate the quoting of its common stock on the Pink Sheets or another OTC market, thereby ensuring the existence of a trading market for its common stock. However, there is no guarantee that a broker will continue to make a market in the common stock or that trading of the common stock will continue on an OTC market or elsewhere.

About Elys Game Technology, Corp.
Elys Game Technology, Corp. is a global gaming technology company operating in multiple countries worldwide. Elys offers its clients a full suite of omnichannel leisure gaming products and services, such as online sports betting, e-sports, virtual sports, online casino, poker, bingo, interactive games, and online slots on a B2C basis in Italy and has B2B operations in five states as well as the District of Columbia in the U.S. market. The Company provides sports betting software, online casino software, services for commercial and tribal casinos, retail betting establishments, and franchise distribution networks.

Elys’ vision is to become a global leader in the gaming industry through the development of pioneering and innovative online casino software. Additional information is available on our corporate website at www.elysgame.com.

Investors may also find us on Twitter @ELYS5D; Instagram @elys5d; LinkedIn Elys America; YouTube @Elys5D; and on Facebook @Elys5D.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project,” and similar expressions that are intended to identify forward-looking statements and include statements regarding Elys. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and its subsequent filings with the U.S. Securities and Exchange Commission, including subsequent periodic reports on Form 10-Q and current reports on Form 8-K. The information in this release is provided only as of the date of this release, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events, except as required by law.

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Investor Contact:
Tom Colton and Alec Wilson
Gateway Group, Inc.
949-574-3860
[email protected]

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