Elys Game Technology, an interactive gaming and sports betting technology company, announced that on October 13, 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 17, 2023.

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 acknowledged 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.

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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”.

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.

Elys Game Technology, an interactive gaming and sports betting technology company, announced the expansion of its footprint in Washington, D.C. with the addition of a third sportsbook location, Grand Central Sportsbook on H Street. The new location builds on the success of both the Grand Central Restaurant and Sportsbook and the Cloakroom Gentlemen’s Club Over Under Sportsbook Lounge, which have been operating successfully in the nation’s capital.

Since the inaugural launch of the small business sportsbook at the Grand Central Restaurant and Sportsbook in October 2021, Elys has been actively seeking opportunities for program expansion. This proven model, which has achieved wide success in Europe, is steadily gaining momentum in the US. As the sports betting landscape evolves, and more states embrace the small business sportsbook concept, Elys is positioned to capitalize on the burgeoning market.

“The small business model presents a compelling opportunity as it offers customers convenient access to betting on their favorite sports while enjoying a night out at their local social establishment. We are buoyed by industry trends in the United States and believe that as more states adopt this model, we can rapidly expand our customer base with minimal upfront costs,” Michele Ciavarella, Executive Chairman of Elys Game Technology, said.

Grand Central Sportsbook on H Street, located at 625D H Street NE in Washington, D.C., is expected to open in Q4 2023. Commencement of sports wagering at Grand Central Sportsbook is subject to final approval by the DC Office of Lottery and Gaming (DCOLG).

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