NeoGames S.A. (Nasdaq: NGMS) has received a notice of deficiency from the Nasdaq Stock Market citing non-compliance with Nasdaq Listing Rule 5605 requiring three members on its audit committee. The non-compliance is the result of the previously-announced departure of Ms. Lisbeth McNabb from her position on the audit committee of the Company’s board of directors. As a technology-driven provider of end-to-end iLottery and iGaming solutions, NeoGames has stated that it is actively searching for an additional independent director for its audit committee and expects to fill the current vacancy and appoint a third independent director to the audit committee of the Company’s board of directors as soon as possible and within the Cure Period.
NeoGames Is Entitled to a Cure Period
According to the Notice, pursuant to Nasdaq Listing Rule 5605(c)(4), NeoGames is entitled to a cure period for the Company to regain compliance, which shall extend no later than October 18, 2023. During this Cure Period, the Company’s ordinary shares will remain listed and traded on Nasdaq, subject to the Company’s continued compliance with other Nasdaq listing requirements.
Impact of Ms. Lisbeth McNabb’s Departure
The departure of Ms. Lisbeth McNabb from her position on the audit committee of the Company’s board of directors resulted in the non-compliance cited by Nasdaq in the Notice. As an experienced board member and audit committee chair, Ms. McNabb had been a valuable asset to NeoGames, and her departure has been felt by the Company. However, NeoGames is committed to complying with all Nasdaq listing requirements and ensuring the smooth operation of its audit committee.
Search for a New Independent Director
NeoGames is actively searching for an additional independent director for its audit committee, with a view to filling the current vacancy and appointing a third independent director to the audit committee of the Company’s board of directors as soon as possible and within the Cure Period. The Company is confident that it will be able to attract a suitable candidate for the role, given its track record of success and the promising future of the iLottery and iGaming industries.
Continued Compliance with Nasdaq Listing Requirements
The Notice has no immediate impact on the listing of the Company’s ordinary shares, which will remain listed and traded on Nasdaq during the Cure Period, subject to the Company’s continued compliance with other Nasdaq listing requirements. NeoGames is committed to complying with all such requirements and ensuring that it maintains its position as a leading provider of end-to-end iLottery and iGaming solutions.
Looking Ahead
As the Cure Period extends until October 18, 2023, NeoGames has ample time to find a suitable candidate for the vacant position on its audit committee. The Company is confident that it will be able to do so, and that it will be able to regain compliance with Nasdaq Listing Rule 5605 within the allotted timeframe. In the meantime, NeoGames will continue to operate as usual, providing its customers with high-quality iLottery and iGaming solutions and adhering to all Nasdaq listing requirements.
Julia Brown is a Master’s in Business Administration by education. After completing her post-graduation, Julia jumped the journalism bandwagon as a freelance journalist. Soon after that she landed a job of reporter and has been climbing the news industry ladder ever since to reach the post of editor. Julia holds keen interest in technology and writes tirelessly on how technology innovation is affecting life and whole world. She has extensive knowledge in technology news writing.
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