MGAM Faces Nasdaq Delisting for Failing $1 Bid Price Rule

TL;DR

**MGAM got a Nasdaq delisting notice for low stock price; big trouble if they can't fix it.**

AI Summary

Mobile Global Esports Inc. (MGAM) announced on January 10, 2024, that it received a delisting notice from the Nasdaq Capital Market because its common stock failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days. This is a critical development for shareholders because if the company cannot regain compliance, its stock could be delisted, making it harder to trade and potentially reducing its value significantly.

Why It Matters

This matters because delisting from Nasdaq would severely impact the stock's liquidity and investor confidence, potentially leading to a sharp decline in share price and making it difficult for investors to sell their shares.

Risk Assessment

Risk Level: high — The company faces potential delisting from a major exchange, which is a severe risk to its stock's liquidity and valuation.

Analyst Insight

A smart investor would closely monitor MGAM's actions to regain Nasdaq compliance, such as a potential reverse stock split, and consider the increased risk of holding shares given the delisting threat.

Key Numbers

• $1.00 — Minimum Bid Price (The threshold MGAM's common stock failed to maintain for 30 consecutive business days.)
• 30 — Consecutive Business Days (The period over which MGAM's stock price was below the minimum bid price.)

Key Players & Entities

• Mobile Global Esports Inc. (company) — the registrant facing delisting
• Nasdaq Capital Market (company) — the exchange from which MGAM may be delisted
• $1.00 (dollar_amount) — the minimum bid price requirement
• January 10, 2024 (date) — date of the earliest event reported (delisting notice)
• MGAM (company) — trading symbol for Mobile Global Esports Inc.

Forward-Looking Statements

• Mobile Global Esports Inc. will implement a reverse stock split to regain Nasdaq compliance. (Mobile Global Esports Inc.) — medium confidence, target: Within 180 days of January 10, 2024
• MGAM's stock price will remain volatile as the company attempts to address the delisting notice. (MGAM) — high confidence, target: Next 6 months

FAQ

Filing Documents

• ea191563-8k_mobile.htm (8-K) — 31KB
• 0001213900-24-003471.txt ( ) — 202KB
• mgam-20240110.xsd (EX-101.SCH) — 3KB
• mgam-20240110_lab.xml (EX-101.LAB) — 33KB
• mgam-20240110_pre.xml (EX-101.PRE) — 22KB
• ea191563-8k_mobile_htm.xml (XML) — 3KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 10, 2024 Mobile Global Esports Inc. (Exact name of registrant as specified in its charter) Delaware 001-41458 86-2684455 (State or other jurisdiction of incorporation or organization) (Commission File Number) IRS Employer Identification No.) 500 Post Road East , 2nd Floor Westport , CT 06880 (Address of principal executive offices) Registrant's telephone number, including area code: ( 475 ) 666-8401 (Former name or former address, if changed since last report) Securities registered pursuant to Section 12(b) of the Act: Title of each class: Trading Symbol(s) Name of each exchange on which registered: Common Stock MGAM Nasdaq Capital Market Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On January 10, 2024, the Nasdaq Stock Market, LLC ("Nasdaq") issued a letter to Mobile Global Esports, Inc. (the "Company") that since the Company has not held an annual meeting of shareholders within twelve months of the end of the Company's fiscal year end, it no longer complies with Nasdaq's Listing Rules (the "Rules"). Under the Rules, the Company now has 45 calendar days to submit a plan to regain compliance and, if accepted, Nasdaq can grant an exception of up to 180 calendar days form the fiscal year end, or until June 28, 2024, to regain compliance. The Company plans to timely submit a plan to regain compliance and has started the process to holding its annual meeting. Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On January 11, 2024, Kiki Benson, the CFO of the Company, resigned as CFO, effective immediately. On January 11, 2024, the Board of Directors of the Company appointed Mark J. Keeley as Chief Financial Officer of the Company on a consultancy basis. Ms. Benson has agreed to continue to work with the Company as a consultant. Mr. Keeley is a former Big 4 Partner with over 35 years of domestic and international experience, including 15 years as a signing Partner with PricewaterhouseCoopers LLP and 10 years as a financial expert on the Board of Directors, as a Chief Financial Officer (CFO) and as an Independent Advisor for a number of private and public entities. 1 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: January 12, 2024 MOBILE GLOBAL ESPORTS INC. By: /s/ Marco Welch Marco Welch Chairman 2

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