Codere Online lodges appeal against Nasdaq delisting
Spain-based operator has been handed a delisting notice after failing to follow the exchange’s listing rules on form submission, but has confirmed it will challenge the verdict
Codere Online has submitted an appeal after the firm received a delisting notice from Nasdaq’s listing qualifications department over a failure to submit a form in a timely manner.
Codere neglected to file Form 20-F for the year ended 31 December 2023, breaching continued listing rule 5250(c)(1) and, as a result, is set to be delisted from the Nasdaq.
Form 20-F is an annual report filing required by non-US and non-Canadian companies that have securities trading in the US.
Codere has formally requested a hearing to appeal the verdict and a stay of suspension of trading after receiving a staff determination letter from the stock exchange.
The business cited delays to the audit of the financials for the reporting period in question as the reason behind its failure to file Form 20-F.
The Madrid-headquartered company said: “The finalisation of the audit of our financial statements has taken longer than expected following the engagement of our new independent registered public accounting firm in March 2024.”
By appealing the decision, Codere has enabled a stay of the trading suspension, which allows the firm’s stock to continue to trade as usual for 15 days after the appeal request is lodged.
The operator has also requested the stay of suspension of trading remains in place throughout the hearing process, and has filed materials to Nasdaq to explain why such a step is appropriate.
According to the letter received by Codere, appeal hearings typically take place around 30 to 45 days after the request is submitted.
Such a timeline would mean it’s unlikely Codere’s case will be heard before the turn of the calendar year.
Codere confirmed it “continues to work diligently to complete and file” Form 20-F, and that it believes it will be able to do so and regain compliance.
Speaking to EGR, a Codere spokesperson said: “We will be providing the market with further updates as soon as possible.”
If the suspension of trading stay isn’t implemented throughout the hearing process, Codere’s stock could be suspended from the Nasdaq on 4 December.
In turn, if Codere is unable to obtain an extension period, a Form 25-NSE will be filed which would result in the company being delisted from the Nasdaq.
Codere Online’s shares are down 4% at the time of writing to $7.58 (£6). However, in the year-to-date, the company’s stock has soared more than 148%.
The operator is due to release its Q3 2024 earnings report on 27 November.