Codere Online has submitted an appeal against a delisting notice it has received from the Nasdaq Stock Market.
In a statement on its website, the online operator has said it received a staff determination letter from Nasdaq’s Listing Qualifications Department notifying the company of the delisting as it hadn’t filed its Form 20-F for the year ended December 31, 2023, in accordance with the continued Listing Rule 5250(c)(1), the Public Reports Rule.
Explaining the filing delay, Codere Online stated: “As previously reported, the company’s delay in filing its Form 20-F is due to the fact that the finalisation of the audit of our financial statements for the three years ended December 31, 2023, has taken longer than expected following the engagement of our new independent registered public accounting firm in March 2024.”
Codere Online also referenced the appeal process, noting that it has formally requested a hearing to appeal the delisting determination and a further stay of suspension of trading during the hearing process.
Hearings usually take place around 30-45 days after the date of the hearing request.
“A request for a hearing regarding a delinquent filing automatically stays the delisting of the company’s securities from Nasdaq through the duration of the hearing,” noted the company.
“It also automatically stays the suspension of trading of the company’s securities for a period of 15 days from the date of the request. The letter also states that when the company requests a hearing, it may also request a further stay of the suspension of trading through the duration of the hearing process.
“Earlier today, the company formally requested both a hearing to appeal the delisting determination (the Hearings Panel) and a further stay of suspension of trading through the duration of the hearing process.
“Furthermore, in connection with this stay request, the company submitted materials to Nasdaq to explain why this stay is appropriate, as required by the Hearings Panel. The company has not yet received a determination regarding its request for this further stay of suspension of trading.”
Codere Online added that it “continues to work diligently to complete and file with the Securities and Exchange Commission (SEC) the Form 20-F” and it believes it can, “thereby regaining compliance with the Public Reports Rule, within the extension period the company plans to seek from the Hearings Panel”.
However, the company also stated that if Nasdaq doesn’t grant it further stay, its stock could be suspended from 4th December.
“If the company fails to obtain an extension period from the Hearings Panel, a Form 25-NSE will be filed with the SEC, which will remove the company’s securities from listing and registration on The Nasdaq Stock Market,” Codere Online concluded.
There has been a key proposal in the Kenyan market by the Cabinet Secretary for National Treasury and Economic Planning, which outlined the potential economic benefits of increasing tax on betting in the region.
Changes arrive as the landscape for Africa grows increasingly competitive and a larger number of eyes are fixated upon the region as one for potential expansion.
Specifically looking at the gaming sector, the plans outlined a potential rise from 12.5% to 15%, leading to a warning that these tax increases could have a negative impact on the prices for consumers.
Furthermore, the industry has also raised the threat of growing the black market as a result of the proposals, which would have a tightening effect on the regulated market.
Amplifying these concerns are other aspects of the bill, such as the potential to limit advertising from the gambling sector.
It comes amidst a backdrop of challenges for the gaming industry in Africa as concerns have been raised over the potential growth of gambling harms amongst African consumers. The ambition of bringing gambling harm numbers down is a priority for the government at this time.
A change from 12.5% to 15% was also put forward for the lottery sector, whilst the same rise was proposed for the prize competition vertical.
Importantly for the African market, it was also proposed that taxes on money transfer services could grow from 15% to 20%, further intensifying the pressure on the gambling operators in the area.
A potential increase follows efforts from the government to mount pressure on gambling as the treasury in Kenya previously implied it would raise the taxes from the industry in its previous budget, earlier in the year.
Previous proposals, however, had pitched the industry shift from 12.5% in taxes to 20%. These came in the middle of the year when the government cited protecting young people’s exposure as crucial.
