The split, effective December 12, is designed to catapult the OTC-listed company's stock price above the Nasdaq's minimum requirement.
Newgioco stock closed at $0.40 on Friday.
"We have elected a reverse stock split to potentially allow Newgioco to meet the listing requirements of the Nasdaq Capital Market," Mike Ciavarella said in a statement. "As one of the only end-to-end, omnichannel betting technology solution providers in the world, operators using older betting platforms have continued to switch to Newgioco's ELYS platform for its superior bet risk management, customisation, speed, reliability and cost-effectiveness."
The move was approved by holders of 62.7% of the total issued and outstanding shares of voting stock on September 23.
Following implementation of the split and provided the stock meets the Nasdaq’s minimum price requirement, the company said it expects to meet the requirements to list on the New York-based exchange.
"Our year-over-year growth has been exceptional, proving that ELYS continues to gain strong demand from retail and online gaming operators throughout the highly competitive Italian leisure betting market while our penetration into key global markets through partnerships with restaurant, bar, tavern, convenience store and a variety of private venue operators continues to expand," Ciavarella said. "Our board believes that a listing on Nasdaq can provide a substantial benefit to our stockholders by improving liquidity and increasing the appeal of our stock to institutional investors."
Toronto-based Newgioco conducts its business primarily through an internet-based betting distribution network on its website, as well as in retail neighborhood betting shops throughout Italy.
It offers a suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots.
The group also owns and operates innovative betting platform software providing both B2B and B2C bet processing for casinos, sports betting and other online and land-based gaming operators.
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