Codere Online Files Appeal on Nasdaq Delisting Ruling

Codere Online Luxembourg (NASDAQ: CDRO), the online betting arm of Spanish gaming giant Codere, said it received a delisting notice from the Nasdaq Stock Market, adding it filed an appeal of that decision.

Delisting of stocks from major exchanges often occurs due to the shares trading below levels such as $5 and $1, but that’s not the case with Codere Online. The stock is up 157.82% year to date and closed at $7.58 on Monday. Codere, instead, received the delisting notification from Nasdaq because the company isn’t in accordance with the exchange’s Listing Rule 5250(c)(1), also known as “the public reporting rule.”

As previously reported, the Company’s delay in filing its Form 20-F is due to the fact that the finalization of the audit of our financial statements for the three years ended December 31, 2023 has taken longer than expected following the engagement of our new independent registered public accounting firm in March 2024,” said Codere Online in a statement.

The circumstances surrounding Codere Online’s possible removal from the Nasdaq aren’t unusual and can potentially be more swiftly dealt with than if the stock was facing price issues.

Codere Appeal in the Works

Nasdaq’s letter to Codere Online indicated the gaming company has the option to request an appeal hearing and file for a stay of trading suspension while the appeals process moves forward. The operator has taken Nasdaq up on both offers.

The request for the hearing puts into motion a stay of the trading suspension, meaning the stock will continue changing hands as usual.

“Hearings are typically scheduled to occur approximately 30-45 days after the date of the hearing request. A request for a hearing regarding a delinquent filing automatically stays the delisting of the Company’s securities from Nasdaq through the duration of the hearing. It also automatically stays the suspension of trading of the Company’s securities for a period of 15 days from the date of the request,” according to the statement.

That timeline indicates it’s possible it could be January before Codere Online gets its Nasdaq hearing.

Codere Online Has Options

The best course of action for Codere Online would be to file the aforementioned financial reports with Nasdaq and regulators, which would render the delisting hearing a moot point. It appears that is exactly what the gaming company is attempting to do.

The Company continues to work diligently to complete and file with the Securities and Exchange Commission (SEC) the Form 20-F and believes it will be able to do so, thereby regaining compliance with the Public Reports Rule, within the extension period the Company plans to seek from the Hearings Panel,” according to the press release.

If another suspension stay isn’t granted, the stock could be removed from the Nasdaq before the start of trading on December 4.