Codere Online comes out fighting after latest Nasdaq delisting notice
Codere Online is appealing a delisting notice from the Nasdaq stock exchange due to its failure to promptly file its 2024 annual report.
The Nasdaq sent the operator a “staff determination letter” on 16 May. This is a notification from Nasdaq that it plans to delist the company from the exchange.
Codere Online has said the delay in producing its 2024 Form 20-F for the Nasdaq related to an audit of the company that has taken longer than expected due to its use of a new independent registered public accounting firm, MaloneBailey LLP. Codere Online only started working with MaloneBailey on 31 December.
The operator has sought a hearing on the matter, which usually takes place within 30 to 40 days of the issuance of the letter.
Codere Online is fighting the delisting effort and said it expects to file its 2024 annual report with the SEC on or prior to 30 May.
While the Nasdaq review process takes place, Codere Online can remain trading if its suspension is stayed further. The operator says it has submitted materials explaining why it should not be suspended but has not received a ruling on the stay of suspension.
If the Nasdaq does not give it additional time, then trading of its securities would be suspended on 6 June.
Codere Online working on exchange compliance
The Nasdaq had threatened to delist the company in November for not meeting its SEC update filing rules.
Codere Online was granted an extension by the Nasdaq hearings panel in January over its failure to file an annual report for its year ended 31 December 2023.
The Nasdaq had given it until 12 May to file the report. Codere Online met that deadline on 1 May.
However, it had also failed to file its 2024 report in accordance with the rules, resulting in the Nasdaq’s delisting resolve.
“We will be appealing this new delisting determination and requesting both a new hearing panel and further stay of any trading suspension,” Codere Online CEO Aviv Sher told investors on 16 May.
“That said, and as already disclosed to the market, we expect to file our 2024 annual report by the end of May. So, would expect to regain compliance with Nasdaq listing requirements ahead of any hearing actually taking place.”
The operator has changed its independent registered public accounting firm to MaloneBailey LLP following the resignation of Marcum LLP on 20 December 2024.
Marcum said it could not complete certain audit procedures due to IT control deficiencies related to the company’s third-party supplied platforms, as well as insufficient controls in place at Codere Online to mitigate those deficiencies.
Marcum had taken over from Ernst & Young, SL, which had notfited Codere Online that it would be declining to stand for reelection or reappointment in 2023.
In the operator’s recent Q1 update, net gaming revenue for the three months to 31 March was €57 million ($63.9 million), up 8% on the previous year’s €53 million.