Astralis to conduct strategic review, may include delisting
Several organizations have been in the public recently due to their falling stock price. FaZe investigating a potential restructuring as their falling stock price and potential delisting has had a major impact on the company. Additionally, Heroic has been in the news as they recently announced insufficient funds to finish out the year, however they were able to find funding earlier this week.
The esports industry has been faced with rounds of layoffs and companies posting diminished revenues as a global recession is making it's way into the marketplace. Recent news concerning FaZe and Heroic have also caused concern as even the biggest and best esports teams are facing financial problems.
Today, Astralis announced that the board of Directors would explore a strategic review that might include delisting the company's shares, a combination with another company, issuance of new shares, a sale of all or some of the company's shares and/or assets, or a combination of some or all four options.
These actions come in response as the shares for Astralis now trade at a "material discount" to the price of the initial public offering. As of this morning, Astralis shares hit a high of DKK 2.00 ($0.29 USD) after the news was released, but are now trading at DKK 1.52 ($0.22 USD), still down from the IPO of DKK 8.95 ($1.31 USD).
The company reports that financial targets for the upcoming year shows a net revenue between DKK 85 million ($12.4 million USD) and DKK 90 million ($13.2 million USD) with earnings before interest, taxes, depreciation, and amortization of DKK 0 million and DKK 5 million ($732,000 USD).
Regardless of the eventual outcome, this marks the third major esports company in the spotlight in the last few weeks thanks to struggles concerning their stock price and financial sustainability.