GGRAsia – Entertainment Gaming Asia wins time for Nasdaq compliance

Entertainment Gaming Asia wins time for Nasdaq compliance

Oct 20, 2014 Newsdesk Latest News, Top of the deck, World

Nasdaq-listed Entertainment Gaming Asia Inc has been granted a six-month extension to regain compliance with the minimum US$1.0 bid price per share listing requirement, the company said in a statement. The new deadline is April 13, 2015.

The company said it plans to tackle the deficiency during the second compliance grace period “by effecting a reverse stock split, if necessary”.

Entertainment Gaming Asia, linked to Hong Kong-listed casino investor Melco International Development Ltd, is a gaming company focused on the emerging gaming markets of Asia.

Entertainment Gaming Asia changed its name from Elixir Gaming Technologies Inc in July 2010. The earlier entity listed on the NYSE American Stock Exchange in April 2004 and transferred listing to the Nasdaq Capital Market in January 2013.

The firm operates slot machines on a participation basis and also supplies gaming chips and plaques to casinos. It currently operates one property in northwestern Cambodia in the province of Banteay Meanchey, Dreamworld Club Poipet (pictured).

Entertainment Gaming Asia’s shares dropped 10.3 percent on Friday to US$0.52.

If at any time during the second six-month grace period, the minimum closing bid price per share of the company’s common stock closes at or above US$1.0 for a period of 10 consecutive business days, the firm will regain compliance, according to the notification from Nasdaq Stock Market LLC.

If Entertainment Gaming Asia however fails to regain compliance by the end of the period, its common stock will be subject to delisting.

The company is planning a subscription rights issue for an aggregate of up to 27,777,673 shares of its common stock at US$0.54 per unit, Entertainment Gaming Asia confirmed last week. It expects about US$15 million in proceeds from the rights offering it is proposing to shareholders.

The company will work to regain listing compliance and believes that it has options available to ensure continued listing on Nasdaq,” it said in the statement. “Management and the board of directors are evaluating these options to determine the optimal course of action.”