Lottery.com has been instructed to nominate a sufficient number of autonomous directors by October 5th to comply with Nasdaq Stock Market regulations. They must fill the remaining positions on their auditing and remuneration committees.
The Nasdaq mandates that corporations have a minimum of three autonomous directors on the auditing committee and two additional members on the compensation committee.
Failure to have enough auditing committee members violates Nasdaq Listing Rule 5605(c)(2). Insufficient compensation committee members breach Nasdaq Listing Rule 5605(d)(2).
Lottery.com must finalize these appointments by next Wednesday to regain compliance with Nasdaq rules.
Nasdaq indicated that if Lottery.com’s plan to adhere to the rules is approved, they might grant an extension of 180 days from September 21st to rectify the situation.
Lottery.com stated that they cannot guarantee a timeframe, but they intend to identify new independent auditing and compensation committee members as soon as possible to restore compliance.
The news came after two board members stepped down, citing the company’s deliberate attempts to hinder a probe into concerns raised by new shareholders.
Lottery.com’s difficulties have been ongoing and well-documented. Last month, Lottery.com received a warning that it could be removed from the Nasdaq stock exchange for failing to submit its most recent quarterly financial report on schedule.
At the time, the Securities and Exchange Commission stated that Lottery.com had not yet provided the final audited figures for its financial statements as of June 30, and therefore could not file a 10-Q form for the period.
In July, it was also revealed that Lottery.com had outstanding wages totaling $425,000, just days after Lawrence (Tony) DiMatteo stepped down as the company’s CEO.
DiMatteo’s exit followed the resignation of Chief Revenue Officer Matthew Clemmensen, who left a week earlier.
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