Codere Online Luxembourg (NASDAQ: CDRO) has received a delisting notice from Nasdaq, prompting the company to file an immediate appeal. Despite the stock's strong performance, with a 157.82% year-to-date increase and a closing price of $7.58, the potential delisting stems from non-compliance with Nasdaq's Listing Rule 5250(c)(1), known as the "public reporting rule."

The company attributes the delay to extended audit processes of its financial statements for 2021-2023, following the engagement of a new independent registered public accounting firm in March 2024.

In response to the delisting notice, Codere Online has:

• Requested an appeal hearing
• Filed for a stay of trading suspension
• Received an automatic stay of delisting through the hearing duration
• Secured a 15-day trading suspension stay from the request date

The appeal hearing is expected to occur within 30-45 days of the request. Codere Online is actively working to file the required Form 20-F with the Securities and Exchange Commission (SEC) to regain compliance before the extension period expires.

Without another suspension stay, the stock could face delisting from Nasdaq before December 4, 2024. However, the company remains confident in its ability to resolve the situation by completing and submitting the necessary financial reports within the extension period they plan to request from the Hearings Panel.

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