Astralis adopt proposal to delist from Nasdaq

8-8-2023 23:04

The company will move forward with an application to take itself off the market.

Astralis A/S has adopted a proposal to delist from the market

Astralis has adopted the proposal to delist from the Nasdaq First North Growth Market Denmark following the conclusion of an extraordinary general meeting on Tuesday.

The company announced on July 11 that it would convene for a meeting on August 8 to vote on a delisting proposal, looking to take itself off the market after nearly four years.

Astralis to vote on delisting from Nasdaq

The proposal required a 2/3 majority 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 as of the previous announcement.

Astralis shares have been trading at what the company referred to as a "material discount" since their initial public offering (IPO) in December 2019, dropping from 8.95 DKK per share ($1.33 USD) to 1.66 DKK per share as of the delisting vote announcement. The shares closed at 0.894 DKK per share on August 8.

Despite the dip in share price, the company stated that it has consistently met its financial targets since its public listing, and reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2022, becoming cash-flow positive after three years.

The share price trading at a material discount, limited liquidity on the Nasdaq First North Growth Market Denmark offering little value for the company and its shareholders, and costs of being listed on the exchange (2-3 million DKK per year between direct and indirect costs) were among the reasons for delisting put forth by the company in its previous announcement.

Astralis will now need to submit an application to be delisted from the Nasdaq First North Growth Market Denmark, with an announcement from the company set to follow after the application is completed.

lol

2023-08-08 23:05

Not sure what this means but maybe a finance bro can explain it to me

2023-08-08 23:06

8 replies

This means that a company that have no cash flow and no reliable income had to delist to not show how utterly shallow E-sports orgs are financly behind the logos and the bravada. Astralis needs to show their books as registred company in NASDAQ and I'm quite certain that the finance information was not a great bargain chip with their investors so the only sensible thing is to unlist so they do not need to show their books. I can't for the life of me not understand why they even entered the stock market. Sure the owners could scam small investors by them buying stocks in their empty shell, but the damage of seeing their finance must surely been worse.

2023-08-09 11:05

1 reply

Because back then the interest rates were so incredibly low, everyone was looking for ways to leverage their (and debt) capital to make insane gains. All good until the interest went up but the capital gains did not. By doing an IPO Astralis was able to sell stocks according to a superficial multiplier and not the actual value of the company.

2023-08-09 18:33

When you are a listed company you need to share information to the public. It means that everyone will know if you are doing good or bad. No one care if the company is doing good actually it’s a good marketing, however when your numbers are consistently bad you are exposed and your competitors can take advantage of it.

2023-08-09 11:14

2 replies

True did not think of marketing, that could be an explaination of it all. And if you do your due diligence of the markets, than it would be obvious that E-sports orgs are in a financly hard time, so in that sense perhaps the showing of books did not damage their image as much for the investors that does research.

2023-08-09 11:22

and sponsors or investors could be reticent to invest in your compagny if you are doing bad publicly, that what happens with Astralis

2023-08-09 11:44

The shares was being traded at below the estimated value that Astralis had for the stock and this means that the underlying value of all of the parts of Astralis was greater than the cost of the company. The substance discount was in other terms higher than the cost of the stock. This could be becuase the market believed that the underlying value of Astralis would tank in time and that the markets price would be accurate in due time. Astralis was obviouisly not confident in their book value due to them not buying back stocks from the market and rather delisted entirely.

2023-08-09 11:16

Here is sort of the idea. So when they registered on the stock market they made IPO's, sort of a "before market" offering. That means you could buy a share at a guaranteed price before the company went on the market. A stock is a part of the company which you purchase with the idea of getting that percentage of the companys earnings. People paid 8,95 per share, but because of disappointing results (or simply the hype disappearing) the shares went as low as 0,86 because the expected results became lower. Hence they decided to withdraw the shares, leaving the shareholders with a big fat 0.

2023-08-09 11:39

tldr is esports arent profitable, and astralis is an example of that

2023-08-10 03:11

i aren't know this

Let's win some tournies huh

9 replies

Wouldn't probably save them financially even if they dominated like back in 2018-2019.

2023-08-08 23:22

yeah I was being a little sarcastic

2023-08-09 00:21

You didn't read the article? "Despite the dip in share price, the company stated that it has consistently met its financial targets since its public listing, and reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2022, becoming cash-flow positive after three years."

2023-08-09 09:12

6 replies

Positive EBITDA means jack shit. If they weren't struggling financially, they would be stating that they are making a profit (which they aren't).

2023-08-09 09:50

4 replies

+1 EBITDA means nothing

2023-08-09 10:06

Funny you don't respond to the main point; "consistently met its financial targets since its public listing"

2023-08-09 13:26

#70 I know you are an Astralis fan and this is hard to watch, but there is no denying that the organization is in a financially unstable state right now.

2023-08-09 13:55

What makes you think that? I am genuinely curious.

2023-08-09 14:49

Indeed in the end of the day the company bleeds money. I would not blame Astralis themselfs, it is just that E-sports orgs are one of the worst investments that can be done

2023-08-09 11:10

interesting

who is surprised

Lesson here... Don't invest in sports teams

2023-08-08 23:07

well when it was first listed on the stock market the owners made bank by selling shares to public

2023-08-08 23:12

to the stars...

what this means?

2023-08-08 23:08

12 replies

their company is no longer shared between persons, it's a normal company again with normal ownership.

2023-08-08 23:13

11 replies

thanks

2023-08-08 23:24

what exactly does that mean

2023-08-08 23:28

en.wikipedia.org/wiki/Share_(finance) this - no longer.

2023-08-08 23:29

2023-08-08 23:33

And what happens with all the shares other people bought?

2023-08-09 00:01

They still own the shares, they just can't trade them on NASDAQ

2023-08-09 00:48

Is scam people might buy it because they can sell it there. They should go to court and demand that owners have to buy the shares back.

2023-08-09 01:19

Stock is still trading on nasdaq, they can sell their shares right now. Ofc at a loss, stock went down 50% last 30d.

2023-08-10 21:39

But they can technically still sell their share of the company i guess? Though not as simple as selling it on NASDAQ i guess?

2023-08-09 08:59

Yes

2023-08-10 21:31

They will be bought back from them, ideally. Again, this means that ownership will fully return to Astralis.

2023-08-09 12:53

Okay, it's Childish Gambino, homegirl drop it like the NASDAQ

Move white girls to replace 'em with the Danske

2023-08-09 01:55

That was a fire reply take this 👑

2023-08-09 06:38

what do you know, another W. Granted, should haven't been a concern in a 1st place, but still a W. A common one for Astralis at this point

2023-08-08 23:10

cap

2023-08-08 23:27

a common Astralis scam indeed

Scam? Holy fuck you have to have a crazy juicer logic to somehow think anyone were scammed here.

2023-08-09 09:15

w? This is one of the biggest red flags to any potential investor for DECADES to come astralis's asshole is gaping like a crater after this

2023-08-08 23:41

smart.

2023-08-08 23:09

ask blameF to bait investors for $$$

2023-08-08 23:39

Zimbabwe man - baiting is not a bad thing, it is a viable tactic in CS GO to try to win round and games.

2023-08-09 17:25

has fraud clan been delisted yet

2023-08-08 23:44

im guessing you mean faze? they are still listen on US nasdaq

2023-08-09 16:47

It appears HLTV users are as financially illiterate as ever.

2023-08-09 00:03

What reason do you see for the delisting? To me part of the reason is they where looking for big international investors to strenghten the company. looks like it didnt go as planned.

So thats why they announced a woman team

2023-08-09 00:40

I bid 100 dollar for all of ii, 50‰ over value 💪

So the good old going public cash grab bites back huh

2023-08-09 00:52

Making out like bandits. Smart business move. Sold shares for a decent price, bought them back at a fraction on the dollar. The owner read some Trump books. After seeing this move, I actually want to invest in his company.

2023-08-09 07:05

Wouldn't say bandits, buying low and selling high isn't really a industry secret.

2023-08-09 08:28

Lol you’re cute. So seeing as it’s not a secret, how are you doing it next? I would love to know. Dm me

2023-08-09 09:53

Thank you, I just keep selling high and buying low. But shhhhhhh, don't tell anyone.

2023-08-10 12:50

Founders and management haven't sold any of their stock. Several of them have even invested heavily at the time of IPO (the most expensive point). They are in the same boat as all incoming investors. They simply want the company to increase in value, and find this the best way of doing it. No one got scammed, but people are certainly sad that the stock price has fallen so much.

2023-08-09 11:21

rip to hese ppl whos hold the bag for 5 years 💎🤲

2023-08-09 07:15

where does this who cars meme thing come from?

2023-08-09 17:26

TO THE MOON

2023-08-09 08:10

Don't be like Astralis, be like ENCE. Lesson learned.

2023-08-09 08:55

2023-08-09 09:52

Aah going public

2023-08-09 09:03

It baffles me so many only read the headline. Must be the gen z TikTok attention span...

2023-08-09 09:44

they also dont want ro report financial reports anymore, I guess. From "player owned" org to this...

2023-08-09 10:03

2023-08-09 11:40

Its the best possible outcome. Esports sector is not meant for public companies. Now they can take back the control without worrying about shareholder value. Being a public company didnt really help them in any meaningful way so why continue to do it.

2023-08-09 11:47