NeoGames has been given a Notice of Deficiency by the Nasdaq Stock Market, due to its audit committee not holding the minimum amount of members.
According to Nasdaq Listing Rule 5605, NeoGames must have at least three members sitting on its audit committee at any one time.
However, following the departure of Lisbeth McNabb, NeoGames only has two independent directors on the audit committee.
NeoGames has confirmed that it is actively searching for a suitable candidate to fill this vacancy and expects to complete this before any further action is needed against the company.
As part of the notice, Nasdaq has given NeoGames a “Cure Period” to rectify the compliance failings.
The Cure Period will last until 18 October, 2023, at which point if NeoGames has not appointed a third member, then it may be subject to additional actions.
At this stage, the notice will have no effect on NeoGames shares, which will remain live on the Nasdaq Stock Market.
It is reported that McNabb’s departure from the company was not as a result of any disagreements between her or the company, nor its policies or practises.
However, as she qualified as an audit committee financial expert, according to the Securities and Exchange Commission, this reduced the committee's membership down to two.
NeoGames is an iLottery and iGaming solutions provider, with a portfolio of platforms, in-house game studios and value-added services.
This development comes only a few weeks after NeoGames announced it had extended its partnership with Caesars.