The Listing Qualifications Department of the Nasdaq stock exchange has written to betting and gaming operator and supplier Newgioco Group after it failed to file its first quarter results in time.
The notification letter has no immediate effect on the listing or trading of Newgioco’s common stock on the Nasdaq, the business noted.
It explained that the novel coronavirus (Covid-19) pandemic, and the travel restrictions imposed by the government in its core Italian market, had hindered its ability to meet filing deadlines. This prevented company officers, management and staff of its independent accountants from travelling to Italy.
Newgioco added that the Securities and Exchange Commission had provided extended conditional exemptions from reporting requirements for businesses affected by Covid-19. This had prompted it to notify the Nasdaq that it would take advantage of this 45-day extension to file its quarterly report, that had originally been due on May 15.
“Newgioco was particularly impacted due to the sudden and unforeseen lockdown of both commercial businesses and travel restrictions in Europe that affected not only our operations but also our ability to carry out corporate responsibilities on a timely basis,” Newgioco chief executive Michele Ciavarella explained.
“Since partial relief to reopen commenced in Italy on 4 May, 2020, our management team and auditors have worked diligently towards completing both our annual report for the year ended 31 December, 2019, which we filed on 2 July, 2020 and our quarterly report for the three months ended 31 March, 2020, which we expect to file as soon as practicable to regain compliance.”
The Nasdaq has informed Newgioco that it must now submit a plan of compliance within 60 calendar days of receipt of the letter – by 31 August – to address how to plans to fulfil listing rules.
If the exchange accepts this plan, it may grant Newgioco an extension of up to 180 days from the quarterly report’s original filing date.
Newgioco said it intends to file the quarterly report within the 60 days provided by Nasdaq.
Shares in the business closed down 7.94% at $2.30 per share in New York yesterday, with its share price down 27.17% over the past year.