Global B2B gaming technology provider Bragg Gaming Group on Friday said it is implementing a consolidation of its common shares, also known as a reverse stock split.
The company’s board of directors released a statement saying the consolidation will be in the form of one post-consolidation common share for every 10 pre-consolidation shares.
The consolidation was approved by shareholders at a special meeting April 28, the company said.
The post-consolidation shares are expected to commence trading on the Toronto Stock Exchange on May 5.
The move comes as Bragg prepares for the potential additional listing of its shares on the Nasdaq Exchange. The company said in a statement its proposed listing is “dependent on satisfying Nasdaq quantitative and qualitative listing standards, and there is no assurance that such listing will be completed.”
Adam Arviv, interim CEO of Bragg Gaming, said the share consolidation is an important step in the company’s US expansion strategy.
“It allows Bragg to list on the Nasdaq, which in turn provides the company with increased flexibility, enhanced liquidity and a higher profile with potential investors,” Arviv explained. “We are pleased that the shareholders shared our vision.”
Bragg said it will mail a letter of transmittal to registered shareholders instructing them to surrender their share certificates representing pre-consolidation shares for replacement certificates, or a direct registration advice representing their post-consolidation shares.
No fractional common shares will be awarded, the company advised. If the resulting fraction is less than one-half of one share, it will be rounded down to the next closest whole number of shares, and if the fraction is at least one-half of one share, it will be rounded up to one whole share.
