Codere Online continues Nasdaq listing after filing 2024 annual report
Codere Online has retained its ability to trade on the Nasdaq by making the necessary SEC (US Securities and Exchange Commission) filings, after the US exchange threatened to delist the operator in May.
Nasdaq sent the operator a “staff determination letter” on 16 May notifying Codere Online that it planned to delist the company from the exchange, as it had failed to file its 2024 annual report on time.
But on Friday the operator stated it had received confirmation from the exchange to continue trading, as it had filed its Form 20-F (annual report for foreign companies) for the year 2024 with the SEC on 2 June.
It said: “Codere Online today announced it has received formal notification from the Nasdaq Stock Market LLC confirming that the company has regained compliance with Nasdaq Listing Rule 5250(c)(1) and that the company is therefore in compliance with the Nasdaq Capital Market’s listing requirements. As a result, the company’s securities will continue to be listed and traded on the Nasdaq Capital Market and are no longer subject to a delisting process.”
Last month, the operator had expected to file its 2024 annual report with the SEC on or prior to 30 May.
And a hearing on the potential suspension and delisting of its stock on 22 May had been requested, but that meeting with a Nasdaq panel was cancelled once the report was submitted.
Cause of the delay in filing
Nasdaq first threatened to delist the company in November due to its failure to file a previous annual report for the year ended 31 December 2023.
It was given an extension in in January, requiring Codere Online to file the report by 12 May, and the deadline was met on 1 May.
Codere came out fighting in May and appealed Nasdaq’s delisting notice. It said the delay was related to an audit of the company that took longer than expected, as it was using new independent registered public accounting firm, MaloneBailey LLP, which Codere Online started working with on 31 December.
The change was made after their prior accountant Marcum LLP resigned on 20 December 2024.
Marcum had said it was not able to complete certain audit procedures due to IT control deficiencies, connected to Codere Online’s third-party platforms.
The firm also said there were insufficient controls in place at the company to mitigate those deficiencies.
Codere Online, in its Q1 results, posted net gaming revenue for the three months to 31 March of €57 million ($63.9 million), up 8% on the previous year’s €53 million.