Codere's Online Betting Arm Faces NASDAQ Expulsion Over Financial Reporting Delay
The online gaming subsidiary of the Spanish giant Codere is facing the threat of being delisted from the NASDAQ technology index for failing to timely file its 2023 accounts, following the resignation of the auditing firm Ernst & Young, which audited them until last year.
Codere's Online Betting Arm Faces NASDAQ Expulsion Over Financial Reporting Delay

As reported by the digital newspaper, the company has submitted a letter to the U.S. Securities and Exchange Commission (SEC), equivalent to Spain's National Securities Market Commission (CNMV), explaining that it received a letter from the Nasdaq Stock Market dated May 20 "notifying the company that it does not meet the requirements to continue trading on the exchange" set forth in that technology index "for not timely filing its annual report on Form 20-F for the year ended December 31, 2023".

Now, in accordance with Nasdaq's listing rules, the company has 60 calendar days from the date of the letter to submit a compliance plan demonstrating that it meets Nasdaq's listing rules. If the technology index accepts this plan, it may grant the company an extension until November 11 to comply with those rules. If Nasdaq does not accept it, the company "will have the opportunity to appeal that decision to the Nasdaq Hearings Panel".

"The Company is working diligently to complete the preparation and review of its financial statements and intends to file its 2023 Form 20-F or submit the Compliance Plan within the prescribed 60-day period".

On May 1, the company, headquartered in Luxembourg and listed on that technology index since December 2021, acknowledged the delay in filing these accounts. It attributed this to the decision of the auditing firm Ernst & Young (EY) not to audit its financial statements for the year 2023. This resignation was communicated to Codere by EY on October 23 last year.

On March 8 this year, Codere engaged the New York-based firm Marcum LLP as its new auditor. On May 1, a public holiday in Spain, the betting company acknowledged that it "cannot file its Annual Report" within the prescribed period "without undue effort and expense due to the recent hiring of the Company's new auditor and the need for additional time to file its Annual Report on Form 20-F for the fiscal year ended December 31, 2023".

On May 15, a holiday in Madrid, the company, which operates from both the capital of Spain and Tel Aviv (Israel), announced a "strong start to 2024", with a 34% increase in revenue to $50.4 million, according to its unaudited accounts, thanks to the "impressive" performance of the Spanish and Mexican markets, its main areas of business, although it also operates in other Latin American countries, such as Argentina.
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