Reuters reports that the Nasdaq exchange sent China’s Luckin Coffee a delisting notice. FOX Business’ Maria Bartiromo with more.
Luckin Coffee plunged Wednesday as trading resumed for the first time since shares were halted on April 7.
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The Xiamen, China-based beverage chain received a delisting notice from Nasdaq on Tuesday, more than a month after its April 2 announcement that its chief operating officer had fabricated as much as $310 million in sales last year. The company has not yet released its fourth-quarter results for 2019.
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Luckin Coffee did not immediately respond to FOX Business’ request for comment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LK | LUCKIN COFFEE | 2.79 | -1.60 | -36.45% |
Luckin priced its initial public offering at $17 a share on May 16, 2019. Shares rallied to a high of $50.02 on January 17, giving the Starbucks challenger a market capitalization of as much as $12.02 billion. Its value has since plummeted to $681 million, including Wednesday’s selloff.
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Luckin’s resumption of trading comes amid calls for the U.S. to get tougher on Chinese companies listed on American stock exchanges. Currently, Chinese firms are not subject to the same investor-protection rules and accounting standards as U.S. companies.
