The company’s listing extension is subject to its adherence to evidencing compliance with a minimum bid price requirement by 7 February 2023.
Esports Entertainment Group must also adhere to a shareholder equity requirement of a minimum of $2.5m of stockholder’s equity by 31 March 2023, among other conditions and requirements.
The supplier says it is currently taking “definitive steps” to ensure it can comply with all conditions and criteria for continued listing on Nasdaq.
Earlier this year, Esports Entertainment completed the “soft play” phase of New Jersey’s Division of Gaming Enforcement regulatory process for betting in the state.
Esports Entertainment’s brand, VIE.gg, launched on 4 April 2022 in NJ, the same day a plethora of operators and providers went live in Ontario, Canada.
Furthermore, Esports Entertainment supposes it is the first brand to be granted the right to launch full esports betting operations in New Jersey, believing it can capitalise on a state which is the US' 11th most populous and has a reputation for gambling.
Elsewhere, the supplier revised its revenue projection earlier this year amid “challenging” Q2 results, suggesting revenue should land within the region of $70m to $75m.
The new projection takes into account a challenging fiscal Q2 for the company, a period that ended on 31 December 2021.
The company posted $14.5m in revenue for Q2, which represented growth of $12.2m compared to the same period last year. However, it also suffered significant EBITDA and cashflow losses due to factors the company has termed “largely outside of our control.”