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Great news, folks! 🥳 Lottery technology broker Lottery.com has triumphantly regained compliance with Nasdaq Stock Market rules after more than a year of challenges! 🎉
In an exciting update, Lottery.com shares that Nasdaq’s Listing Qualifications Department has given the broker a big thumbs-up for showcasing compliance with the minimum bid price requirements. Nasdaq Listing Rule 5450(a)(1) is crystal clear: ordinary shares must not dip below $1.00 over the preceding 30 consecutive business days. And guess what? Lottery.com nailed it! 🙌
But that’s not all, folks! 🤩 Lottery.com had also been in hot water for breaking Listing Rule 5250(c), which insists that companies must file their accounts by specific deadlines. Oops! Last year, Lottery.com missed the deadline for submitting its Q2 report, and Nasdaq gave them a friendly warning that they might face de-listing. 😬
Fear not, though! Lottery.com sprang into action, and in recent months, they’ve been working tirelessly to get back on track with stock market rules and regulations. They played their trump card with a reverse stock split, a move that was overwhelmingly approved by their shareholders just last month. 🃏💼
Imagine this: a jaw-dropping 1-for-20 reverse split! 🎰🔁 It became effective when the clock struck midnight on August 9th, and the results are phenomenal! 🎆
In June, the Nasdaq Hearings Panel gave Lottery.com until June 15, 2023, to file an annual report on Form 10-K for the year ending on December 31, 2022, and a quarterly report on Form 10-Q for the period up to March 31, 2023. Tick-tock! ⏰
They also had until August 24th to regain compliance with the minimum bid requirements, which meant their shares needed to reach at least $1.00 for a minimum of 10 consecutive business days. 📈
And guess what happened next? Drumroll, please! 🥁 A notification letter, received by Lottery.com on September 8th, confirmed that they hit the bullseye! 🎯 Their shares had a closing bid price at or greater than $1.00 for the full 10 business days from August 10th to August 31st. Bingo! 🎯🎉
As a result, Lottery.com was officially declared back in the game, compliant with the minimum bid price rule! 🏆🚀 And that’s not all! Nasdaq also gave Lottery.com a big thumbs-up for being back in compliance with periodic filing rules. 💼💼
The cherry on top? Lottery.com’s share price skyrocketed, hitting an impressive $4.15 when this fantastic news broke on Tuesday, before settling at a still-impressive $3.63. 💰💰
Talk about a welcome boost for the troubled Lottery.com! 🤑 This incredible news comes against a backdrop of ongoing uncertainty at the company. In July, they bid farewell to another CEO, Mark Gustavson, who had only been in charge since February. 🙋♂️
But fret not! Chairman Matthew McGahan is temporarily taking the reins. 🏇
Gustavson had been appointed to replace Sohail Quraeshi, who also held the position for just a few months. What’s with the revolving door of CEOs, Lottery.com? 🚪👔
But wait, there’s more! Lottery.com recently introduced Robert Stubblefield as their new Chief Financial Officer. 📊📈 Plus, they added Paul Jordan and Tamer Hassan as independent members of the board. 👥👥
It’s been quite the rollercoaster ride for Lottery.com, trying to steady its ship after a turbulent few years. In May, they revealed they were facing a “material weakness” related to accounting non-compliance, amidst an ongoing class action. 😅
Their Q2 2022 report raised concerns about the effectiveness of their controls and procedures in reporting financial results. This was all tied to an overstatement of revenue in July 2022. Drama alert! 🚨
This led to the resignation of the Chief Revenue Officer, Matthew Clemenson, followed shortly by CEO Lawrence DiMatteo stepping down. 🤯
And if that’s not enough, in March, Lottery.com became the subject of a legal showdown with the founders of lottery data business TinBu. John Brier and Bin Tu filed a lawsuit alleging that Lottery.com didn’t fulfill promises of compensation after acquiring their company. 😱
The lawsuit claims that Lottery.com failed to make the first of certain payments promised in their deal with TinBu. They also alleged that the business didn’t deliver promised tokens. Oh, the drama! 💥
These struggles have been widely publicized, and when McGahan’s predecessor, Richard Kivel, resigned, he didn’t hold back. He declared it had become “impossible” to perform as an independent director. 😬
Kivel mentioned that emergency funding from Woodford Eurasia was nowhere to be seen. And here’s the kicker: the Chief Compliance Officer was under FBI investigation! 😳🕵️♂️
Kivel had been a Lottery.com board member since November 2021 and endured through the ongoing turmoil that led other board members to throw in the towel in September 2022. 🙈
