Codere Online has been granted an extension by the Nasdaq Hearings Panel, giving the company until May 12, 2025, to file its 2023 Annual Report. This extension allows the online gaming operator to maintain its Nasdaq listing and continue its operations without the threat of delisting.
Following a January 16 hearing, Codere Online presented its compliance plan and detailed how it plans to meet the new filing deadline. The company, a significant player in the online gaming markets of Spain and Latin America, is collaborating closely with its new auditor, MaloneBailey, to complete the report in the given timeframe.
In a statement, Codere Online expressed confidence in its ability to meet the deadline: “The company has and continues to work diligently with its new auditor to complete and file with the Securities and Exchange Commission (SEC) its 2023 Annual Report and expects to do so within the extension period granted by the Panel, thereby regaining compliance with the Rule.”
Market Response and Analyst Expectations
The announcement resulted in a 13.39% surge in Codere Online’s shares, with higher-than-average trading volumes. This marked the stock as one of the top performers in the gaming sector on that day. Despite earlier challenges, including the resignation of its previous auditor, Marcum, in late 2024, Codere’s stock has shown impressive growth. Over the past year, its shares have increased by 72%, now trading at their highest levels since November 2024.
Stifel analyst Jeffrey Stantial commented, “We expect prior audit work completed for FY23 under Marcum can be leveraged, allowing for more resources to be allocated to the dual-tracked FY24 filing.”
However, questions remain about whether MaloneBailey will encounter similar issues with platform reports, a challenge often faced in the gaming industry. As Stantial noted, Marcum appeared excessively conservative in its earlier assessments, suggesting that MaloneBailey might adopt a different approach.
Looking ahead, Codere Online is scheduled to release its Q4 2024 earnings on February 20, 2025, before the U.S. market opens. A conference call will follow at 8:30 AM ET. Investors are now focused on whether MaloneBailey can complete the 2023 report by the May 12 deadline, as the company works to regain full compliance.
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