Luckin Coffee Abandons Plans to Appeal Nasdaq Delisting

Source: Regulation Asia Editors, Regulation Asia 2020-06-29

A hearing with Nasdaq Hearings Panel was scheduled for Thursday but Luckin withdrew its request a day before.

China’s Luckin Coffee will delist from the Nasdaq, after announcing on Friday (26 June) that it was abandoning plans to appeal a delisting notice filed by the exchange in mid-May.

Luckin fired its CEO and chief operating officer in May after it the company was found to have fraudulently inflated sales. The Nasdaq delisting notice against Luckin Coffee cited public interest concerns and the company’s past failure to publicly disclose material information.

In response, Luckin formally requested an oral hearing on the matter before the Nasdaq Hearings Panel and said it would remain listed pending the outcome of the hearing.

A hearing was scheduled for Thursday (25 June), but Luckin withdrew the request a day before. Its shares will now be suspended at Monday’s open of business.

Luckin’s stock has 95 percent of its value since the end of March.

Earlier this month, Chinese authorities reportedly found evidence linking Luckin’s chairman to the fraud, saying he is likely to face criminal charges.

Luckin Coffee Abandons Plans to Appeal Nasdaq Delisting

Subscribe to Our Newsletter!

Subscribe to Our Newsletter!