Its Israeli outfit is scheduled for a merger under the umbrella of its newly formed Delaware business, SharpLink Delaware.
This move was for purely pragmatic purposes, according to SharpLink’s CEO, Rob Phythian. He said, since the majority of its business is now carried out in the States, domestication is the most sensible option.
“After careful consideration, our Board of Directors and management team believes that domesticating into the US as a Delaware corporation is in the company’s best interests since almost all of our business and operations are now located in and conducted from the US and a substantial majority of our outstanding ordinary shares are held by US residents,” he explained.
“We also believe that the company and our shareholders will benefit from Delaware’s well-established principles of corporate law and governance.”
Shareholders needn’t worry either, according to Phythian, who added: “We do not expect this change will have any impact on our day-to-day operations.”
Each outstanding ordinary and preferred share of the company will automatically be exchanged for one share of SharpLink Delaware common stock or preferred stock.
All outstanding options and warrants to purchase ordinary shares of the company will convert to the right to purchase the same number of shares of common stock of SharpLink Delaware.
It anticipates that SharpLink Delaware’s common stock will continue trading on the Nasdaq Capital Market under the same SBET symbol once the merger takes effect.