Codere Online's Recent Nasdaq Delisting Challenge Explained
Codere Online Challenges Nasdaq Delisting Notice
Recently, Codere Online Luxembourg, S.A. (“Codere Online” or the “Company”) (Nasdaq: CDRO / CDROW) faced a significant hurdle when it received a delisting notice from Nasdaq due to an incomplete filing. This determination was part of Nasdaq's ongoing compliance checks designed to protect investors and ensure transparency in financial reporting.
Understanding the Delisting Notice
The Company was informed through a formal letter from Nasdaq's Listing Qualifications Department that it would be delisted because it did not submit its Form 20-F for the year ended December 31, 2024, as per Nasdaq's Public Reports Rule. This filing is crucial for providing investors with essential financial data, and its absence raised concerns.
Codere Online attributes this delay to challenges encountered during the auditing process, primarily stemming from the transition to a new independent registered public accounting firm and the effort to finalize the previous year’s filing. The Company's commitment to complying with financial reporting requirements remains strong, and efforts are underway to address these compliance issues promptly.
Appealing the Delisting Decision
In response to the delisting notice, Codere Online has taken proactive measures. The Company promptly requested a hearing to contest the Staff's determination, allowing them a chance to present their case. This hearing could take place within 30 to 45 days from the request date, offering a window of opportunity for Codere Online to demonstrate its commitment to remedial actions.
The filing for the hearing not only seeks to appeal the delisting decision but also aims to secure a stay that would prevent the suspension of trading its securities during this process. If granted, this stay would facilitate the trading activities of Codere Online’s securities while the situation is being reviewed.
Steps to Regaining Compliance
Codere Online is dedicated to completing the 2024 Form 20-F and believes it will file the document with the SEC by a specified date, ahead of the scheduled hearing. The Company is optimistic about regaining compliance with the Public Reports Rule and mitigating any further risks of delisting.
In the absence of a granted stay, however, trading of Codere Online's securities might be suspended, impacting its stock performance. The Company is handling this situation with urgency, preparing the required documentation and information to strengthen its case for compliance.
About Codere Online and Its Operations
Codere Online represents a significant player in the online gaming sector, launching its services in 2014. It operates within a well-known group that also excels in traditional casino operations. Codere Online provides customers with innovative online sports betting and casino experiences across its comprehensive website and mobile applications.
With operational bases in several countries, including Spain, Mexico, Colombia, Panama, and Argentina, Codere Online integrates its online offerings with Codere Group’s physical locations, creating a seamless omnichannel gaming experience for its users. As a leader in this competitive market, maintaining compliance with regulatory requirements is essential for continuing its growth trajectory.
Looking Ahead
As Codere Online awaits the outcome of the appeal hearing, the Company's management remains focused on finalizing its financial filings and handling the implications of the delisting notice. With a commitment to transparency and regulatory compliance, Codere Online aims to restore investor confidence and continue its operational success in the dynamic online betting landscape.
Frequently Asked Questions
What led to Codere Online receiving a delisting notice?
Codere Online received a delisting notice from Nasdaq because it failed to file its Form 20-F for the fiscal year ending December 31, 2024, on time.
What steps is Codere Online taking in response to the delisting?
The Company has requested a hearing to appeal the delisting and is also seeking a stay to maintain trading during the appeals process.
When is the hearing for Codere Online scheduled?
The hearing is typically scheduled 30 to 45 days after the request is made, although the exact date will be determined by Nasdaq.
What will happen if Codere Online does not get a stay?
If a stay is not granted, trading of Codere Online’s securities will be suspended starting June 6, 2025, unless compliance is restored beforehand.
How does Codere Online plan to regain compliance?
The Company is diligently working to file its 2024 Form 20-F with the SEC by the end of May 2025, which they believe will restore compliance with Nasdaq regulations.
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