NextPlay Technologies risks Nasdaq delisting over SEC filing delays

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NextPlay Technologies risks Nasdaq delisting over SEC filing delays
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NEW YORK - NextPlay Technologies, a provider of gaming and digital financial services, is facing potential delisting from the Nasdaq stock exchange due to delays in filing required reports with the Securities and Exchange Commission (SEC). The company has been formally notified about its non-compliance with Nasdaq Listing Rule 5250(c)(1), which mandates timely SEC filings.

The notification from Nasdaq to NextPlay Technologies came on November 28, 2023, specifically concerning the company's digital banking services. In response to the threat of suspension from Nasdaq trading platforms, which was anticipated to occur on December 7, 2023, NextPlay has taken steps to secure an appeal request through payment. It is important to note that while the appeal process has been initiated, there is no certainty that the company will regain compliance.

NextPlay's forward-looking statements acknowledge several significant hurdles, including the challenge of securing sufficient capital and navigating the constantly changing landscape of digital currency regulations. These factors are particularly pressing for NextBank International and Longroot, NextPlay’s financial service entities. The company's recent financial disclosures have highlighted substantial debt in its SEC filings such as the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Should NextPlay fail to meet Nasdaq's requirements, it may be compelled to file Form 25-NSE with the SEC, which would officially confirm its delisting. The situation underscores the broader challenges faced by companies operating in the digital currency space, where market volatility and regulatory scrutiny are ever-present concerns.

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