Why Esports Entertainment Group (GMBL) Shares Are Plunging
Portfolio Pulse from Henry Khederian
Esports Entertainment Group, Inc. (NASDAQ:GMBL) shares dropped 26% to $0.0151 after announcing a 1-for-400 reverse stock split to meet Nasdaq listing requirements. The split will reduce outstanding shares from 426 million to approximately 1.065 million and will also decrease authorized shares from 500 million to 1.25 million. Ownership percentages remain unchanged, though fractional shares will be rounded up. GMBL's 52-week range is $0.01 to $23.80.
December 20, 2023 | 3:36 pm
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Esports Entertainment Group's stock price fell significantly due to the announcement of a 1-for-400 reverse stock split, which is often viewed negatively by the market as it underscores issues with maintaining listing requirements.
Reverse stock splits are typically seen as a negative signal about a company's financial health and its ability to maintain stock price levels. The significant reduction in outstanding shares and the corresponding drop in share price reflect investor concerns and could lead to a bearish outlook in the short term.
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