Codere Online Luxembourg (NASDAQ: CDRO), the online betting arm of Spanish gaming giant Codere, announced it received a delisting notice from the Nasdaq Stock Market and subsequently filed an appeal against this decision. Delisting of stocks from prominent exchanges usually occurs when shares trade below specific thresholds, such as $5 or $1; however, Codere Online’s situation deviates from this norm. The stock has soared by 157.82% year-to-date and ended today’s trading session at $7.58. The delisting notice was issued because Codere Online did not comply with Nasdaq’s Listing Rule 5250(c)(1), also known as “the public reporting rule.”
In a statement, Codere Online explained the delay: “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.”
Codere Online’s potential removal from Nasdaq is not an unprecedented scenario and can be addressed more expediently compared to price-related stock issues. Nasdaq’s letter provided Codere Online with the option to request an appeal hearing and to file for a stay of the trading suspension while the appeal process moves forward. Codere Online has chosen to pursue both options, triggering a process where the stock will continue trading normally for the time being.
“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,” the company stated, indicating that the hearing might not take place until January.
The optimal route for Codere Online is to file the necessary financial reports with Nasdaq and regulators, which would negate the need for a delisting hearing. The company appears 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,” Codere Online explained in its press release.
The stock faces potential delisting before the start of trading on Dec. 4 if another suspension stay is not granted.
 received a Nasdaq delisting notice due to public reporting rule issues; stock up 157.82% YTD, ending at $7.58 today.){kind=link}