Allied Gaming faces Nasdaq delisting over share price

Published 29/01/2025, 14:32
Allied Gaming faces Nasdaq delisting over share price

Allied Gaming & Entertainment Inc. (NASDAQ:AGAE), a company operating in the amusement and recreation services sector, has been notified by the Nasdaq Stock Market of a potential delisting due to its stock price falling below the required minimum.

The Nasdaq Listing Qualifications Department issued a deficiency letter to Allied Gaming on January 22, 2025, indicating that the company’s common stock had not met the $1.00 minimum bid price for 30 consecutive business days, as stipulated by Nasdaq Listing Rule 5550(a)(2).

Despite this warning, the current status of Allied Gaming’s listing on the Nasdaq Capital Market remains unaffected. The company has until July 21, 2025, to address the issue and regain compliance with the Bid Price Requirement.

While facing these challenges, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.57 and holds more cash than debt on its balance sheet. To achieve this, the company’s common stock must maintain a closing bid price of at least $1.00 for ten consecutive business days.

Allied Gaming is evaluating the situation and considering potential measures to ensure compliance with the Nasdaq’s requirements. The company’s management remains focused on monitoring the stock’s closing bid price and exploring available options to meet the Nasdaq’s bid price criterion. This information is based on a recent SEC filing by Allied Gaming & Entertainment Inc.

In other recent news, Allied Gaming & Entertainment Inc. reported a noteworthy 93% revenue growth for the third quarter of 2024, despite facing a net loss of $4.0 million. This loss was attributed to various factors, including a settlement loss and unrealized foreign currency transaction losses. The company’s mobile arena experienced its busiest quarter since 2023, and there was a significant investment from Yellow (OTC:YELLQ) River Global Capital.

Furthermore, Allied Gaming & Entertainment launched the World Mahjong Tour and hosted several events at the HyperX Arena. The company is directing its focus towards the World Mahjong Tour and new mobile game titles, anticipating demand growth for the HyperX Arena and Omen Mobile Arena. Despite the net loss, the adjusted EBITDA loss showed improvement compared to the previous year’s quarter.

These are recent developments that reflect the company’s strategic initiatives and its ability to navigate through financial challenges. The backing from Yellow River Global Capital, which includes strategic resources and networking opportunities, is expected to support the company’s future endeavors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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