The company is going through a series of difficulties that include a change of auditor, accusations of fraud, and the possibility of being delisted from Nasdaq.
Spain.- Codere Online, the online gaming operator part of Grupo Codere, is facing several crucial challenges that threaten its market stability. Among the main difficulties are the recent change of auditor, accusations of stock market fraud, and the imminent threat of exclusion from the Nasdaq Stock Exchange.
The company, which had hired Marcum LLP as its auditor, was forced to look for a replacement after this company resigned on December 20 due to deficiencies in the internal controls and in the cybersecurity of third-party platforms used by Codere Online. This made it difficult to carry out the necessary audit procedures, leaving the company in a vulnerable situation.
As part of its effort to regain regulatory compliance, Codere Online appointed MaloneBailey, LLP as its new independent auditor on December 31. This change occurs in a delicate context, as the company had already reported significant weaknesses in its internal controls in 2021 and 2022, including failures in the oversight of subcontracted processes and in the cybersecurity measures managed by its parent company, Grupo Codere.
In parallel to this restructuring, Codere Online has received a notification from Nasdaq about the possible delisting of its shares for not having submitted its Form 20-F for the fiscal year 2023. The company has a key hearing on January 16, where it will request an extension to meet the pending requirements. If the request is accepted, Codere could have until May 2025 to update its financial reports for 2023 and 2024.
See also: Moody’s assigns Codere a corporate rating of Caa2 after completing its global recapitalization
A delisting from Nasdaq would force Codere Online to be listed on the stock exchange, which would likely decrease its appeal among professional investors and negatively affect its valuation.
