Codere Online continues Nasdaq listing after filing annual report
Codere Online Successfully Navigates Nasdaq Delisting Threat by Meeting SEC Filing Requirements
Codere Online has successfully upheld its position on the Nasdaq exchange by completing essential filings with the U.S. Securities and Exchange Commission (SEC), following a delisting warning issued in May. This proactive move underscores Codere Online’s commitment to compliance and transparency in the competitive gambling sector.
On May 16, Nasdaq notified Codere Online of its intention to delist the company due to a failure to submit its 2024 annual report on schedule. This action is part of the rigorous regulatory framework that governs financial disclosures for publicly traded companies, particularly in the technology and gambling industries.
However, the operator quickly addressed the matter, confirming that it had filed its Form 20-F—an annual report specifically for foreign companies—on June 2. This filing reaffirmed Codere Online’s compliance with Nasdaq Listing Rule 5250(c)(1), allowing it to maintain its listing on the Nasdaq Capital Market without the threat of delisting.
In a statement, Codere Online expressed, “We are pleased to have received formal notification from Nasdaq Stock Market LLC affirming our compliance with listing requirements. Our securities will continue to be actively traded on the Nasdaq, ensuring uninterrupted market access.”
Timeline of Key Events
Last month, Codere Online anticipated filing its 2024 annual report with the SEC by May 30. A hearing regarding potential suspension and delisting, scheduled for May 22, was ultimately canceled upon submission of the report.
Understanding the Delay in Filing
The initial delisting notice originated in November 2023 due to a prior breach concerning the submission of their annual report for the year ending December 31, 2023. Codere Online received an extension in January, allowing it to file the report by May 12, a deadline that was met on May 1.
Codere Online appealed the delisting notice, attributing the delay to an extended audit process involving its newly appointed independent registered public accounting firm, MaloneBailey LLP, effective December 31, 2024. This transition followed the resignation of their previous accountant, Marcum LLP, which had cited IT control deficiencies tied to Codere Online’s third-party platforms as the reason for its inability to complete certain audit procedures.
Marcum LLP also identified a lack of sufficient internal controls at Codere Online to mitigate these issues, highlighting the critical importance of robust governance in the gambling sector.
Financial Performance Highlights
Despite these challenges, Codere Online’s Q1 results reveal a strong performance, with net gaming revenue of €57 million ($63.9 million) for the three months ending March 31, reflecting an 8% year-over-year increase from €53 million. This growth underscores the resilience of Codere Online and its strategic importance in the evolving landscape of online gaming.
In summary, Codere Online’s successful navigation of potential delisting procedures not only reinforces its commitment to regulatory compliance but also highlights its ongoing growth and operational efficiency within the gambling industry.
