Zona de Azar Israel – Codere Online Stands Strong Against Potential Nasdaq Delisting

Israel.- 21th November 2024 www.zonadeazar.com Codere Online has been issued a warning by the Nasdaq Exchange concerning the potential delisting of its securities.

The warning was issued due to Codere Online’s failure to fulfill its listing requirements, particularly its inability to submit a Form 20-F with the company’s financial statements for the year ending December 31, 2023. This failure breaches Nasdaq’s Listing Rule 5250.

As a result, Codere has been issued a warning by Nasdaq’s Listing Department, signalling the possible termination of its securities on the global exchange.

Codere responded by explaining that the delay in filing its accounts was due to the prolonged finalisation of financial audits, following the engagement of a new independent auditor in March 2024.

Investors were informed that Codere has formally requested a hearing with Nasdaq’s Hearings Panel to appeal the delisting decision. “The hearing typically occurs 30-45 days after the request and stays the delisting and suspension of trading for a limited time.”

In addition, Codere Online has requested an extended stay of the trading suspension pending the outcome of the hearing, stating that it has substantive evidence to justify maintaining its securities.

If the extended stay is not granted, trading of the company’s securities will be suspended on 4 December 2024. A failure to secure an extension from the Hearings Panel would result in the filing of a Form 25-NSE with the SEC, delisting the company’s securities from Nasdaq.

Codere Online has been listed on Nasdaq since December 2021, following its merger with the special purpose acquisition company (SPAC) DD3 Acquisition Corp.

In earlier updates, Codere Online noted that finalising audits for the financial years ending 2021, 2022, and 2023 had taken longer than expected, leading to delays in meeting the filing deadline.

In H2 2024, Codere SA, the majority owner of Codere Online, agreed on a new recapitalisation programme. As part of this, bondholders agreed to discount 90% of the firm’s debt, reducing it from €1.4bn to €190m.

This significant debt reduction allows Codere S.A. to retain ownership of its online subsidiary and its retail operations in South America, including units in Argentina, Colombia, and Mexico.

As Codere Online noted: “The Company continues to work diligently to complete and file with the Securities and Exchange Commission (SEC) the Form 20-F and believes it will be able to do so, thereby regaining compliance with the Public Reports Rule, within the extension period the Company plans to seek from the Hearings Panel.”

Edited by: @MaiaDigital www.zonadeazar.com