Shareholders of European esports organisation Astralis will vote on August 8th for a proposed delisting from the NASDAQ First North Growth Market Denmark.
According to a company announcement Astralis’ executive management, Board of Directors and major shareholder Jakob Lund Kristensen, have confirmed their intention to vote in favour of the decision.
The proposal to delist will require two-thirds of the votes and capital present at the General Meeting. The story was first reported by esports journalist Richard Lewis.
Astralis’ decision to initiate a vote to delist comes as little surprise given that the organisation launched a strategic review in March 2023 following a continual decline in its stock price. In the review, the company said it planned to assess possible future directions, one of which included a potential delisting.
Since its public listing via an Initial Public Offering in December 2019, Astralis’ stock price has declined by 80%, going from DKK 8.94 (~£1.02) to DKK 1.07 (~£0.12).
“The liquidity of the company’s share on Nasdaq First North Growth Market Denmark is very limited, which means that there is limited value for both the company and its shareholders being listed on a public marketplace,” Astralis highlighted in the announcement.
Despite the continued decline of Astralis’ stock, the organisation has posted relatively positive financial results. In 2022, the company announced a loss of DKK 9.7m (~£1.1m) in 2022, much lower than 2021’s figure of DKK 35m (~£4.1m). Moreover, Astralis netted increased revenues (DKK 88m or £10.3m) and a positive EBITDA of DKK 2.6m (~£305,700) in 2022.
Being a publicly listed company comes at a cost. Astralis estimated that it could save over DKK 2m (~£228,900) in direct costs in addition to DKK 1m (~£114,400) in indirect annual cost savings by not being publicly listed.
The company announcement read: “Through a delisting and the consequential significant direct and indirect savings, Astralis A/S aims to create a more profitable business for its shareholders and free up resources and funds for new investments.”
The esports organisation, which was established in 2016, also provided an overall outlook for the company. Notably, this included the organisation highlighting that it has sold off part of Pixel.TV, which it acquired a majority stake in 2022, as well as ceased its Rainbow 6 Siege division.
Astralis will instead turn its focus to its ‘key business’, it said. This is centred around its League of Legends and Counter-Strike divisions, franchise league ownerships, commercial partnerships, and the development of offerings and products.
The organisation’s mention of its focus on League of Legends comes despite recent reports that the company is looking to sell its LEC franchise spot.