Codere Online Successfully Averts Nasdaq Delisting by Meeting SEC Requirements
Codere Online has successfully navigated a potential delisting from the Nasdaq by filing essential documents required by the U.S. Securities and Exchange Commission (SEC). This development follows a warning issued by the exchange in May, indicating that the company was at risk of being removed.
On May 16, Nasdaq communicated its intent to delist Codere Online due to the missed deadline for submitting its 2024 annual report. However, the operator announced that on June 2, it filed the necessary Form 20-F—a requirement for foreign entities—effectively addressing the compliance issue.
In a recent statement, Codere Online confirmed receipt of formal notification from Nasdaq, affirming that it has regained its compliance with Listing Rule 5250(c)(1). This reinstatement means that the company’s securities will continue to be traded on Nasdaq, eliminating any concerns about delisting.
Initially, Codere Online anticipated completing the 2024 annual report on or before May 30. A hearing was scheduled for May 22 to discuss the possibility of suspending its stock trading, but this was canceled following the timely submission of the report.
Behind the Filing Delay
The delisting threat was not the first time Codere Online faced challenges with its filings. Nasdaq had initially warned the company back in November about its failure to submit an earlier annual report for the fiscal year ending December 31, 2023. Following an extension in January, Codere successfully filed that report on May 1.
In the context of these legalities, the delay in filing was attributed to the transition to a new auditing firm, MaloneBailey LLP, which Codere Online began collaborating with at the end of December. The former auditor, Marcum LLP, resigned shortly before, citing difficulties in completing audit procedures linked to inadequacies in IT control related to Codere’s third-party platforms.
In its most recent quarterly results, Codere Online reported a net gaming revenue of €57 million ($63.9 million) for the quarter ending March 31, reflecting an 8% increase over the previous year’s figure of €53 million.
This series of events highlights the resilience of Codere Online as it strives to maintain its presence in the competitive gaming sector, successfully addressing regulatory hurdles while continuing to report growth.