Nasdaq Exchange informs Ruixing Coffee to delist, Ruixing plans to request a hearing
The Nasdaq Exchange notified Ruixing Coffee (Nasdaq: LK) to delist.
On the evening of May 19th, Beijing time, according to the documents submitted by Ruixing Coffee (Nasdaq: LK) to the US Securities and Exchange Commission (SEC), the company received the Listing Qualifications Staff of the US Securities and Exchange Commission on May 15th. In writing, the Nasdaq Exchange decided to delist the company.
Ruixing Coffee said it plans to request a hearing on this decision, and will continue to list on the Nasdaq before the results of the hearing are released. The hearing is usually scheduled 30 to 45 days after the request of the hearing.
According to the disclosed documents, the SEC's Listing Eligibility Committee made the delisting decision for two reasons: According to the Nasdaq Exchange Listing Rule 5101, the fake transaction disclosed by Ruixing Coffee on April 2 raised public interest concerns; The Nasdaq exchange listing requirements are 5250. Ruixing Coffee has failed to publicly disclose effective information in the past and has conducted false transactions through the previous business model.
Ruixing Coffee is headquartered in Xiamen, Fujian, and started trial operation in January 2018. In November 2017, Qian Zhiya stepped down as the director and COO of UCAR, and left the business to establish Ruixing Coffee. Through its "crazy" store opening and user subsidies, Ruixing Coffee, which has been established for two years, not only quickly established a foothold in the Chinese coffee market, but also landed on NASDAQ in May 2019 with the fastest IPO of Chinese stocks.
On April 2 this year, Ruixing Coffee announced that the self-examination found that the company's chief operating officer Liu Jian was fraudulent in finance and involved approximately 2.2 billion yuan in transaction value. The company's board of directors established a special committee to conduct an internal investigation. In addition, a number of law firms in the United States initiated class actions against them, accusing Ruixing Coffee of making false and misleading statements that violated US securities laws.
After the news came out, Ruixing Coffee's stock price plummeted. Since Nasdaq asked Ruixing Coffee to provide more information, the stock has been suspended since April 7, and its final transaction price is $ 4.39, with a market value of only $ 1.1 billion.
According to Peng Mei News, citing foreign media reports, people familiar with the matter said that the US SEC is investigating the financial fraud of Ruixing Coffee employees. The China Securities Regulatory Commission has also publicly stated that since Ruixing Coffee has exposed its financial fraud, it has expressed its solemn position and communicated with the US Securities Regulatory Commission on cross-border regulatory cooperation matters. China Securities Regulatory Commission also said that the US Securities Regulatory Commission has made a positive response.
Surging news reporter Wang Qifan