Published on: November 18, 2024, 08:35h.
Last updated on: November 18, 2024, 08:37h.
Codere Online Luxembourg (NASDAQ: CDRO), the online betting arm of Spanish gaming giant Codere, stated it was notified about its delisting from the Nasdaq Stock Market. The company has filed an appeal against this decision.
Delisting from major exchanges usually happens when stock prices fall below specific thresholds, but in the case of Codere Online, its stock has seen a 157.82% increase year-to-date and closed at $7.58 today. The delisting notice from Nasdaq is due to the company not being in compliance with Listing Rule 5250(c)(1), also known as “the public reporting rule.”
According to a statement from Codere Online, “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.”
The situation regarding Codere Online’s potential delisting from Nasdaq is not uncommon and can be addressed more quickly than if there were price-related issues.
Codere’s Appeal Process
Nasdaq’s letter to Codere Online mentioned that the gaming company can request an appeal hearing and apply for a trading suspension stay while the appeals process is ongoing. Codere has taken advantage of both options.
By requesting the hearing, the trading suspension will be put on hold, allowing the stock to continue trading normally.
“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,” as stated in the announcement.
Based on this timeline, Codere Online may not have a Nasdaq hearing until January.
Codere’s Strategic Moves
The best course of action for Codere Online would be to file the necessary financial reports with Nasdaq and regulators to avoid the delisting hearing altogether. The gaming company seems to be working towards this goal.
“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,” the press release stated.
If a suspension stay is not granted, Codere Online may be removed from Nasdaq before trading begins on Dec. 4.