Codere Online appeals Nasdaq delisting notice over reporting rule compliance

Codere Online, the digital betting arm of Spanish gaming company Codere, has received a delisting notice from the Nasdaq Stock Market due to non-compliance with the exchange’s “public reporting rule,” Listing Rule 5250(c)(1). The company has filed an appeal and is working to address the issue.  

While delistings often occur due to shares trading at low levels, that's not Codere Online’s case, whose stock has seen strong performance, up 157.82% year-to-date, closing at $7.58. The delisting stems from a delay in filing the company’s Form 20-F for financial statements covering the past three years, attributed to the extended audit process following the engagement of a new accounting firm in March 2024.  

Codere Online has requested a hearing with Nasdaq, which automatically stays the delisting and suspension of trading for 15 days. Trading will continue as usual during this period.  

“Hearings are typically scheduled to occur approximately 30-45 days after the date of the hearing request,” the company said, indicating that the hearing could take place in January 2025.  

The company is working to complete and file its financial reports with the Securities and Exchange Commission (SEC) to regain compliance. Codere Online stated it believes the filings will be submitted within the extension period it plans to request from the Nasdaq Hearings Panel.  

“The Company continues to work diligently to complete and file with the SEC the Form 20-F and believes it will be able to do so, thereby regaining compliance with the Public Reports Rule,” Codere said in a press release. 

If Codere Online successfully files the reports before the hearing, the delisting process would become unnecessary. However, without further suspension stays, Nasdaq could remove the stock from its listings before trading begins on Dec. 4.