Codere Online Luxembourg, the online betting division of the Spanish gaming giant Codere, recently disclosed that it has received a notice from the Nasdaq Stock Market regarding a potential delisting. The company has taken steps to appeal this decision in order to avoid being removed from the exchange.
Despite the fact that Codere Online’s stock is performing well, with a 157.82% increase year-to-date and closing at $7.58, the delisting notification was a result of the company’s failure to comply with Nasdaq’s Listing Rule 5250(c)(1), also known as “the public reporting rule.” This rule requires timely filing of financial reports, which Codere Online has not met due to delays in the audit of their financial statements.
In response to Nasdaq’s letter, Codere Online has requested an appeal hearing and filed for a stay of trading suspension while the appeals process unfolds. This means that trading of the stock will continue as usual until a decision is reached. Typically, these hearings are scheduled to take place within 30-45 days of the request, indicating that Codere Online may not have a resolution until January.
The company’s best course of action is to complete and file the necessary financial reports with Nasdaq and regulators to regain compliance with the exchange’s rules. Codere Online is working diligently to achieve this goal and hopes to accomplish it within the extension period they plan to request from the Hearings Panel.
Failure to secure another suspension stay could result in the stock being removed from the Nasdaq before trading begins on December 4th. Therefore, it is crucial for Codere Online to meet the reporting requirements to avoid delisting. The company remains optimistic about its ability to resolve this issue and continue trading on the exchange.
