Cambodian casino owner Entertainment Gaming Asia has been given 180 days, until October 14, to resurrect its share price on the Nasdaq Stock Market, having seen it fall below the minimum requirement.
The operator has been served with a Nasdaq noncompliance notice saying it must lift its share price to the Nasdaq minimum of $1 and must retain that price for at least 10 consecutive days. If it can’t do this, a second 180-day period may be allowed before EGA’s stock is delisted from the exchange. Its share price recently dropped as low as $0.87.
Entertainment Gaming Asia said: “The company will work to regain listing compliance and believes that it has options available to ensure continued listing on Nasdaq. Management and the board of directors are evaluating these options to determine the optimal course of action. As of yesterday, (April 22) the closing bid price of the Company’s shares was $0.87, and it will actively monitor the performance of the stock with respect to the listing standards.”
However, the price has since fallen to Friday $0.82.
Entertainment Gaming Asia operates two Dreamworld casinos on Cambodia’s border with Thailand. Its $2.5m Pailin project, which operates with 26 gaming tables and 52 electronic gambling machines (EGMs), has been struggling to attract customers from across the Thai border. In Poipet, it operates a gaming floor with 300 EGMs.
It reported a nine per cent drop in revenue from $26.8m in 2012 to $24.3m in 2013.
It stated in its annual report: “For the year ended December 31, 2013, we incurred a net loss from continuing operations of approximately $5.2m and may continue to incur losses for the foreseeable future.”
Further problems could stem from the fact that its contract with NagaWorld, to whom it has supplied 670 EGMs, expires in 2016. “There can be no assurances that we will be able to renew the contract under similar conditions, if at all,” Entertainment Gaming Asia said.