The Emerge Gaming Limited (ASX: EM1) share price has returned from its lengthy suspension and crashed lower on Wednesday.
In morning trade the eSports and gaming technology company’s shares sank as much as 50% to 5.2 cents.
At the time of writing, the Emerge Gaming share price is down 41% to 6 cents.
This is also down 65% from its peak of 17 cents in October.
Why is the Emerge Gaming share price crashing lower?
After the market close on Tuesday, Emerge Gaming released an update on the registrations for its MIGGSTER social gaming platform.
In October the company claimed to have over 6 million pre-registrations for the platform, which costs $12 a month or $113 a year for a subscription.
This caught the eye of both investors and stock exchange operator ASX Ltd (ASX: ASX).
The latter appeared concerned by these numbers and over the last few weeks has sent a series of queries to Emerge Gaming.
With the platform now live, the company has been able to reveal just how many of these 6 million pre-registrations have actually signed up.
How many subscriptions has Emerge Gaming achieved?
According to its update, Emerge Gaming has sold a total of 25,674 subscriptions as of 7 December.
This comprises 20,615 annual packages, 1,662 six-month packages, and 3,397 monthly packages. A quick calculation shows this to be worth approximately $2.5 million in revenue. Though, this doesn’t include any potential revenue sharing with its partners.
Despite so far only converting 0.43% of its pre-registrations, management remains upbeat on its subscriptions.
It commented: “MIGGSTER subscriptions continue to show encouraging growth and Emerge will continue to provide the market with material updates as they transpire.”
However, judging by the Emerge Gaming share price performance on Wednesday, it doesn’t appear as though investors are as optimistic as they are.