Why Esports Entertainment Group (GMBL) Shares Are Plunging

Esports Entertainment Group, Inc. GMBL shares are trading lower by 26% to $0.0151 Wednesday morning after the company announced a 1-for-400 reverse stock split of its common stock.

This move, effective December 21st, aims to comply with Nasdaq listing requirements by reducing outstanding shares from around 426 million to approximately 1.065 million. The reverse split won't affect ownership percentages, but fractional shares will be rounded up.

This action will also proportionately reduce the authorized shares of common stock from 500 million to 1.25 million shares.

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According to data from Benzinga Pro, GMBL has a 52-week high of $23.80 and a 52-week low of $0.01.