Codere Online

Codere Online at risk of Nasdaq expulsion

Codere Online has informed the Securities and Exchange Commission (SEC) that it risks expulsion from the US Global Nasdaq index.

On May 20, the company received a warning letter from the Nasdaq Stock Market for not submitting its 2023 accounts on time. As a result, Codere Online does not meet the standard requirements to continue trading on the US stock market.

Codere Online failed to present its annual report on Form 20-F for the year ended December 31, 2023. To comply, the company must submit a compliance plan within 60 calendar days that certifies adherence to Nasdaq listing standards.

If Nasdaq accepts the response, Codere Online could get an extension until November 11 to comply. If Nasdaq rejects the plan, the Spanish company can appeal to the Hearing Panel.

Spanish newspaper quoted Codere Online, stating that the company is diligently working to complete and review its financial statements. It intends to file its 20-F 2023 or present the compliance plan within the 60-day period.

The company acknowledged the violation in early May, attributing it to Ernst & Young’s failure to audit its 2023 financial statements after the firm renounced the task in October 2023.

Codere Online hired the New York firm Marcum LLP as its new auditor but indicated that the new auditor cannot meet the established deadline without excessive efforts and expenses. Therefore, the company needs additional time to submit its Annual Report on Form 20-F for the fiscal year ended December 31, 2023.

Codere Online has been trading on the Nasdaq since January 2021. Previously, it was a subsidiary of the Spanish gambling group Codere SA. Codere SA divested its online business to the SPAC firm DD3 Acquisition Corp, which subsequently listed Codere Online on the Nasdaq.

In May, Codere Online published its Q1 results, achieving commercial growth as revenues increased by 34% to €53 million, compared to €39m in Q1 2023. The Q1 report cited improved trading in Spain and Mexico, with adjusted EBITDA doubling to €8.8m.

Codere SA is the majority shareholder of Codere Online. The divestment was approved as part of its €2 billion debt restructuring programme agreed with bondholders in 2021.

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