Codere Online's stock dropped sharply after its auditor Marcum resigned on December 20, potentially endangering the company's Nasdaq listing status. The stock fell 8.42% on more than double the average daily trading volume.

Marcum's resignation stems from its inability to verify the completeness of Codere's 2021-22 financial records due to third-party platform provider relationships. The company now faces a critical Nasdaq appeal hearing on January 16, 2025, with hopes of extending their compliance deadline to May 12, 2025.

Despite recent setbacks, with the stock down 17.24% over the past month, Codere Online has shown strong performance in 2024, up 113.95% year-to-date. Stifel analyst Jeffrey Stantial maintains a "buy" rating with a $10 price target, suggesting a 58.9% upside potential.

The delisting notice stems from non-compliance with Nasdaq's Listing Rule 5250(c)(1), the public reporting rule. Codere Online reports being in advanced discussions with potential replacement auditors, aiming to secure one before the January appeal hearing.

While the auditor resignation adds complexity to Codere's situation, analysts remain cautiously optimistic about the company's chances of maintaining its Nasdaq listing, citing its strong operational track record. However, losing the Nasdaq listing would force the $306.67 million company to trade over-the-counter, potentially limiting its institutional investor access.

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