{"id":386181,"date":"2020-11-20T16:03:18","date_gmt":"2020-11-20T21:03:18","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=386181"},"modified":"2020-11-20T16:03:18","modified_gmt":"2020-11-20T21:03:18","slug":"500-com-limited-announces-unaudited-financial-results-for-the-third-quarter-ended-september-30-2020","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/500-com-limited-announces-unaudited-financial-results-for-the-third-quarter-ended-september-30-2020\/","title":{"rendered":"500.com Limited Announces Unaudited Financial Results For the Third Quarter ended September 30, 2020"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n SHENZHEN, China<\/span>, Nov. 20, 2020<\/span> \/PRNewswire\/ — 500.com Limited (NYSE: WBAI) (“500.com,” “the Company,” “we,” “us,” “our company,” or “our”), an online sports lottery service provider in China<\/span>, today reported its unaudited financial results for the third\u00a0quarter ended September 30, 2020<\/span>.<\/p>\n

\n Resumption of Operations in Sweden<\/span><\/b>\n <\/p>\n

The Multi Group (“TMG”), a Malta<\/span>-based subsidiary of the Company, has temporarily suspended its operations in Sweden<\/span> in early 2020 as TMG did not complete the renewal of its e-Gaming license before it expired. The Company promptly issued a Current Report on Form 6-K dated January 13, 2020<\/span> regarding this situation, and provided an update through another Current Report on Form 6-K dated February 20, 2020<\/span>. After submitting all the application materials and maintaining close communication with Sweden’s<\/span> e-Gaming regulatory authority, TMG completed the renewal process and resumed its operations in Sweden<\/span> in September 2020<\/span>. The Company’s revenues for the third quarter ended September 30, 2020<\/span> have been, and for the fiscal year of 2020 are expected to be, materially and adversely impacted by the temporary suspension of TMG’s operations in Sweden<\/span>. Revenue generated by TMG accounted for approximately 89.7% of the Company’s total net revenues for the fiscal year ended December 31, 2019<\/span>, of which approximately 61.3% was generated from Sweden<\/span>.<\/p>\n

\n Completion of Internal Investigation<\/b>\n <\/p>\n

On December 31, 2019<\/span>, the Company announced that its Board of Directors (the “Board”) had formed a Special Investigation Committee (the “SIC”) to internally investigate alleged illegal money transfers and the role played by consultants following the arrest of one consultant (also a former director of the Company’s subsidiary in Japan<\/span>) and two former consultants by the Tokyo District Public Prosecutors Office. On January 16, 2020<\/span>, the Company announced that the SIC had retained King & Wood Mallesons LLP (“KWM”) as its legal advisor to assist with its internal investigation.<\/p>\n

On October 7, 2020<\/span>, the Company announced that the SIC of the Company’s Board completed its internal investigation.\u00a0<\/p>\n

KWM presented its investigation review to SIC on October 7, 2020<\/span>. Based on the findings and analyses in KWM’s review, the SIC has concluded that it did not find a sufficient basis to establish a violation of the US Foreign Corrupt Practices Act of 1977 in connection with the Company’s prior activities in Japan<\/span>. The SIC has also reviewed the Company’s compliance policies, procedures and internal controls in light of the suggestions from KWM. The Company has updated such policies, procedures and internal controls based on recommendations from the SIC, and will continue to enhance its internal controls as appropriate.<\/p>\n

\n Annual Report on Form 20-F for the Fiscal Year ended December 31, 2019<\/span><\/b>\n <\/p>\n

The Company previously filed a Form 12b-25 with the SEC on June 15, 2020<\/span> for late filing of its Annual Report on Form 20-F for the fiscal year ended December 31, 2019<\/span> (the “2019 Annual Report”), pursuant to which the 2019 Annual Report was due to be filed by June 30, 2020<\/span>. The Company expects to file the 2019 Annual Report (i) upon completion of the previously announced internal investigation being conducted by the SIC of the Company’s Board, with the assistance of KWM, (ii) once the Company’s financial statements for the fiscal year ended December 31, 2019<\/span> are finalized, (iii) once the Company has completed the assessment of the effectiveness of its internal control over financial reporting as of December 31, 2019<\/span>, and (iv) once the Company’s independent registered public accounting firm has completed its audit of financial statements and internal control over financial reporting as of December 31, 2019<\/span>.<\/p>\n

The Company also reports that on July 1, 2020<\/span>, the Company received an expected notice from New York Stock Exchange (“NYSE”) Regulation stating that the Company is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria pursuant to Section 802.01E of the NYSE Listed Company Manual as a result of the Company’s failure to timely file the 2019 Annual Report with the SEC. As required by the notice, (a) a representative of the Company contacted the NYSE on July 1, 2020<\/span> to discuss the status of the 2019 Annual Report, and (b) the Company is issuing this press release, disclosing the status of the 2019 Annual Report, noting the delay and the reason for the delay, as mentioned above. The anticipated filing date of the 2019 Annual Report is not known at this time.<\/p>\n

NYSE Regulation notified the Company that the NYSE will closely monitor the status of the Company’s late filing and related public disclosures for up to a six-month period from the due date of the 2019 Annual Report. If the Company fails to file its annual report and any subsequent delayed filings within six months from the filing due date, the NYSE may, in its sole discretion, allow the Company’s securities to trade for up to an additional six months depending on specific circumstances, as outlined in Section 802.01E of the NYSE Listed Company Manual.<\/p>\n

The Company intends to meet the filing deadline of six\u00a0months from the filing due date of the 2019 Annual Report, or December 31, 2020<\/span>.<\/p>\n

\n Suspension of Online Sports Lottery Sales in China<\/span><\/b>\n <\/p>\n

All provincial sports lottery administration centers to which the Company provided sports lottery sales services have suspended accepting online purchase orders for lottery products in response to the Notice related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales (the “Self-Inspection Notice”), which was jointly promulgated by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People’s Republic of China<\/span> on January 15, 2015<\/span>. In response to the Self-Inspection Notice, on April 4, 2015<\/span>, the Company decided to voluntarily suspend all online lottery sales services. As a result of the provincial sport lottery administration centers’ decision to suspend accepting online lottery orders and the Company’s voluntary suspension of all online sports lottery sales services in China<\/span>, the Company has not generated any revenue from these services since April 2015<\/span>.<\/p>\n

\n Third<\/b>
\n \u00a0Quarter <\/b>
\n 2020<\/b>
\n \u00a0Highlights<\/b>\n <\/p>\n