Codere Online Files Appeal on Nasdaq Delisting Ruling
Codere Online Luxembourg (NASDAQ: CDRO), the online gaming division of the Spanish gaming company Codere, announced that it has received a delisting notice from the Nasdaq Stock Market and also reported that it has submitted an appeal against that decision.
The removal of stocks from prominent exchanges typically happens when their prices fall below thresholds like $5 and $1, but that isn’t true for Codere Online. The stock has increased 157.82% since the beginning of the year and finished at $7.58 on Monday. Instead, Codere obtained the delisting notice from Nasdaq as the company is not in compliance with the exchange’s Listing Rule 5250(c)(1), referred to 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 situation regarding Codere Online’s potential removal from the Nasdaq is not uncommon and may be resolved more quickly than if the stock were experiencing price problems.
Codere Appeal Underway
Nasdaq's correspondence to Codere Online stated that the gaming firm has the choice to seek an appeal hearing and request a trading suspension stay as the appeals process progresses. The operator has accepted both proposals from Nasdaq.
The hearing request activates a pause on the trading suspension, indicating that the stock will keep exchanging as normal.
“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 schedule suggests it might be January before Codere Online has its Nasdaq hearing.
Codere Online Offers Choices
The optimal strategy for Codere Online would be to submit the previously mentioned financial reports to Nasdaq and regulators, making the delisting hearing unnecessary. It seems that this is precisely what the gaming company is trying to achieve.
"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 a further suspension stay isn’t approved, the stock might be delisted from the Nasdaq prior to the beginning of trading on December 4.
