Enthusiast Gaming announces intention to voluntarily delist from Nasdaq

Enthusiast Gaming Holdings announced that it has notified the Nasdaq Stock Market of its intention to voluntarily delist its common shares from Nasdaq. Shares will continue to trade on the Toronto Stock Exchange. As previously announced in its press release dated May 4, 2023, the Listing Qualifications department of Nasdaq approved the Company’s request for a 180-day extension to regain compliance with Nasdaq’s minimum bid price requirement under Nasdaq Listing Rule 5450(a)(1). Although the Company has until October 30, 2023, to regain compliance with the Bid Price Rule, after careful consideration, the Company has evaluated the benefits and costs of continuing its listing on Nasdaq and has concluded that it is appropriate to voluntarily delist from Nasdaq. The Company estimates that it incurs over $2 million of annual costs in connection with maintaining a dual listing, which expenses are expected to increase significantly in future years due to increasing compliance and other regulatory requirements. With the Shares concurrently trading on the TSX, the Company believes the relatively high insurance, listing, reporting, legal and compliance costs that are associated with a continued U.S. stock exchange listing, as well as the administrative burdens and requirements associated with maintaining a dual listing, are not justified at this time. The Company has also concluded that a reverse split of the Company’s Shares in order to come into compliance with the Bid Price Rule is not in the best interest of shareholders. The Company intends to file a Form 25 with the U.S. Securities and Exchange Commission on or about October 30, 2023, which Form would become effective 10 days following filing thereof, resulting in the delisting of the Shares from Nasdaq on or about November 9, 2023.