In yesterday’s after-hours trading, Mobile Global Esports Inc. (NASD: MGAM) soared up the charts, rising 36.41% to close at $1.48. Even in the absence of recent news, MGAM stock rose, so there may be some justification to think that current events may provide more details about the firm.
What has occurred recently?
The NASDAQ Stock Market LLC this week sent Mobile Global Esports (MGAM) a letter of the notification dated December 22 informing the company that it is not in conformity with the minimum bid price condition outlined in NASDAQ Listing Rule 5550(a)(2) for continuing listing on the NASDAQ. According to NASDAQ Listing Rule 5810(b), which mandates rapid reporting upon the receiving of a deficiency notification, this press release is being distributed.
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Listing Rule 5810(c)(3)(A) states that a failure to fulfill the minimum bid price requirement occurs if the deficit persists for a period of 31 consecutive business days. NASDAQ Listing Rule 5550(a)(2) mandates that listed securities maintain a minimum bid price of $1.00 per share. MGAM failed not to reach the minimum bid price requirement based on the ending trading price of its ordinary shares for 31 straight working days from November 8, 2022, to December 21, 2022.
According to the NASDAQ Listing Rule, MGAM has until June 19, 2023, or 180 calendar days, to return to conformity with NASDAQ Listing Rule 5550(a) (2). For a minimum of 10 consecutive trading days, the closing bid price of MGAM ordinary shares must be at least $1.00 in order to restore compliance. If by June 19, 2023, the Company has not returned to compliance, it may be eligible for an extension to do so or it may be delisted.
Shares to be repurchased by MGAM
MGAM recently stated that its Board of Directors has approved a share repurchase program with authorization to periodically buy up to $1 million of its common stock at the direction of the Board. Mobile Global Esports (MGAM) will repurchase up to $1,000,000 of its common stock because it is dedicated to generating long-term value for its stakeholders and properly allocating its resources and cash.