Astralis to vote on NASDAQ delisting after share price drops 80% cover image

Astralis to vote on NASDAQ delisting after share price drops 80%

The company hopes delisting will help them save around 2-3 million DKK in costs.

Astralis has announced an ‘Extraordinary General Meeting’ on August 8, 2023. The purpose of this meeting is to vote on a proposal for delisting from the Nasdaq First North Growth Market Denmark. This move comes as the company’s stock price has lost more than 80% of its IPO value (8.95 DKK).

The delisting was included as a potential outcome of the board’s strategic review meeting on March 30, 2023. The agenda for the Extraordinary General Meeting on August 8 includes: 

1. Election of Chairman of the Extraordinary General Meeting.

2. Proposed delisting of Astralis A/S from Nasdaq First North Growth Market Denmark

Why is Astralis looking at delisting?

The primary reason for exploring delisting as an option is because the Astralis stock price has dropped by more than 80%. The stock’s current price is trading at a material discount compared to the listing price of the Initial Public Offering. This ultimately results in a case where there is very little benefit to having the company listed on the stock exchange.

Delisting the company means the company no longer has to publish annual reports. There are also monetary benefits such as saving on listing costs and the company no longer having to maintain a minimum listing limit. 

The Astralis stock on the NASDAQ exchange. Screengrab via <a href="" target="_blank" rel="noreferrer noopener nofollow">NASDAQ</a>.
The Astralis stock on the NASDAQ exchange. Screengrab via NASDAQ.

Astralis says they have met their financial targets and despite this, the company’s share price has fallen drastically over the past few years. 

Since the public listing on 9. December 2019, Astralis A/S has consistently met its financial targets. The Company has successfully pursued an agile business strategy, the development of existing and new revenue streams, and a decoupling of revenue and profit from in-game team performance. The Company has secured a continuous growth in revenue, achieved positive EBITDA in 2022 and is a significant player in the still-growing global esports industry.

As mentioned earlier, the company can also save significant costs by delisting, with the announcement estimating savings of almost “DKK +2m in annual direct costs and addition of DKK 1m in indirect annual cost savings (management and resources).”

Vote expected to go through

With the proposal on the agenda for the General Meeting on August 8, it would require at least two-thirds of the votes for the motion to pass through. With the executive management, the entire board of directors, and major shareholder Jakob Lund Kristensen all confirmed to vote in favor of the proposal, shareholders can expect the motion to pass through.

Astralis has streamlined its focus in esports by venturing out of esports titles that do not seem as lucrative. Over the past few years, the company has exited games such as Rainbow Six Siege to focus more on its League of Legends and Counter-Strike divisions.

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