Codere Online warns of risk of Nasdaq index expulsion

Codere intends to submit its 20-F or a compliance plan.
Codere intends to submit its 20-F or a compliance plan.

Codere Online failed to submit its accounts on time.

Spain.- Codere Online has advised the Securities and Exchange Commission (SEC) that it risks being expelled from the US Global Nasdaq index. The Spanish company received a warning letter from the Nasdaq Stock Market on May 20 for failing to submit its 2023 accounts on time via Form 20-F. That means it no longer meets the requirements to trade on the US stock market.

The company has 60 days to submit a compliance plan. If Nasdaq accepts that, Codere Online could receive an extension until November 11. If the plan is rejected, the company will have the chance to appeal to the Hearing Panel. Codere Online says it is working to complete its financial statements and plans to file its Form 20-F or present a compliance plan within the period given.

It attributed the delay to Ernst & Young’s failure to audit its 2023 financial statements. It has since hired Marcum LLP as but said that its new auditor could not meet the deadline.

Codere Online began trading on the Nasdaq in January 2021 after splitting from Codere SA via a sale to SPAC firm DD3 Acquisition Corp. Codere SA remains the majority shareholder of Codere Online.

Earlier this month, Grupo Codere announced that first-quarter revenue was €313.8m, a 14 per cent decrease from last year. It was affected by restrictions in Mexico and a challenging macroeconomic environment in Argentina. Excluding these two business units, revenues were up by 4 per cent year-on-year and above budget.

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