Codere Online, the online betting division of Spanish gaming giant Codere, saw its stock price fall 8.42% following the resignation of its auditor Marcum on December 20. The resignation raises concerns about the company's ability to maintain its Nasdaq listing.

Marcum resigned due to inability to verify completeness of Codere's 2021-22 financial records, specifically citing issues with third-party platform provider relationships. The company now faces a critical Nasdaq appeal hearing on January 16, 2025, with potential extension until May 12, 2025.

Despite recent struggles, Codere Online has performed well in 2024, with shares up 113.95% year-to-date. Stifel analyst Jeffrey Stantial maintains a "buy" rating with a $10 price target, suggesting 58.9% upside potential.

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

A successful appeal would give the company until May 12, 2025, to complete both FY23 and FY24 F-20 filings. While the auditor resignation adds complexity, analysts remain cautiously optimistic given the company's strong operational performance.

Failure to maintain Nasdaq listing would force the $306.67 million company to trade over-the-counter, potentially limiting its access to institutional investors.

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