Astralis to vote on delisting from Nasdaq
The Danish company will vote to delist from the market after nearly four years.
Astralis A/S entered the market in December 2019 at a price of 8.95 DKK per share ($1.33 USD), a value that has since fallen drastically to 1.66 DKK per share as of the market opening on July 11 (that value dropped further following the announcement of the meeting, closing at 1.075 DKK).
Despite the dip in share price, the company outlined that it has consistently met its financial targets since its public listing, succeeding in developing "existing and new revenue streams" and "decoupling revenue and profit from in-game team performance." Astralis also reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2022, becoming cash-flow positive after three years and showing growth overall as a sustainable business. The company reported an annual revenue of 49 million DKK ($7.1 million) in 2019 (-$3.3 million EBITDA) versus an annual revenue of 88 million DKK ($12.8 million) in 2022 ($0.4 million EBITDA).
"Despite the strong financial performance, the share price has dropped 80% since the listing and now trades at a material discount to the price at the initial public offering (IPO)," the document from the company reads. "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.
"A main aim of the IPO was to strengthen the Company's international position by means of market consolidation and acquisitions through share issues and invest further in existing and potential new business areas. The limited liquidity in the Company's shares and the development of the share price have meant that it has become difficult for the Company to participate in the market consolidation on attractive terms for the Company's shareholders."
The cost of being listed on the Nasdaq exchange is estimated by Astralis to be between 2-3 million DKK between direct and indirect annual costs, resources the company argues would be better utilized in other areas. Delisting from the market would also mean the company would no longer be covered by disclosure obligations for market abuse regulation that are applied to companies listed on the Nasdaq.
The proposal to delist will be the only real matter on the agenda during Astralis August 8 extraordinary general meeting. The motion requires 2/3 of the votes and capital present at the meeting to vote in favor of it to pass, with the company's executive management, entire board of directors, and major shareholder Jakob Lund Kristensen all confirmed to vote in favor of the proposal.