Codere Online (NASDAQ: CDRO) shares dropped 8.42% on heavy trading volume after announcing their auditor Marcum's resignation on December 20, potentially threatening their Nasdaq listing status.

The auditor's departure stems from inability to verify completeness of the gaming operator's 2021-22 financial records due to third-party platform provider relationships.

Key developments:

• Nasdaq delisting appeal hearing scheduled for January 16, 2025
• Company seeks extension until May 12, 2025 to file required documents
• Stock down 13.24% weekly and 17.24% monthly, but up 113.95% YTD
• Current share price around $6.30

Stifel analyst Jeffrey Stantial maintains a "buy" rating with a $10 price target, citing:

• Advanced discussions with replacement auditor candidates
• Strong operational track record
• Potential for resolving delayed filings by extension deadline
• Challenging timeline but optimistic outlook

The $306.67 million company risks trading over-the-counter if delisted from Nasdaq, which could significantly reduce institutional investor interest. The delisting notice stems from non-compliance with Nasdaq's Listing Rule 5250(c)(1), known as "the public reporting rule," rather than minimum share price requirements.

Management is actively working to secure a new auditor before the January appeal hearing while simultaneously preparing FY23 20-F filings and ensuring smooth auditor transition.

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