Posted on 05/19/2020 12:44:02 PM PDT by SeekAndFind
HONG KONG/NEW YORK—Luckin Coffee Inc said on Tuesday that Nasdaq Inc has given it notice that it plans to delist it from the U.S. stock exchange, a month after the Chinese coffee chain disclosed that some of its employees fabricated sales accounts.
The move underscores Nasdaq’s renewed focus on the auditing standards of companies on its bourse. This week it tightened its listings rules with an eye to curbing initial public offerings (IPOs) of Chinese companies that are closely held by insiders and are not transparent about their accounting, Reuters reported on Monday.
Luckin said in early April that as much as 2.2 billion yuan ($310 million) in sales last year were fabricated by its chief operating officer Jian Liu and other staff, who had been suspended while the company carried out its investigation.
The falsified numbers equate to about 40 percent of Luckin’s annual sales projected by analysts, according to Refinitiv IBES data.
In its delisting notice, Nasdaq cited public interest concerns raised by the fabricated transactions and Luckin’s failure to publicly disclose material information, the company said, confirming an earlier Reuters report.
Luckin plans to challenge the move before a Nasdaq hearing panel, and will remain listed until this delivers an outcome, most likely in the next two months, the company added.
(Excerpt) Read more at theepochtimes.com ...
Their whole market premise was to undercut Starbuck’s pricing and use an app for orders.
Uhmmmm....morons.
Everyone has an app
Starbuck’s is a social experience and something of exclusivity.
> In its delisting notice, Nasdaq cited public interest concerns raised by the fabricated transactions... <
I must disagree with Nasdaq on this one. What’s the big deal? When dealing with the ChiComs, you should expect them to lie, all the time. It’s how they roll. It should just be factored in.
It’s like ordering a Hungarian dish, and being offended that it contains paprika.
If you like coffee made with chicken feet and chicken beaks you’re in luck in.
Copy cat knock off of Starbucks... Another Chinese theft of intellectual properties. While there is not much of a secret in a coffee shop they tried to copy starbucks.
STOP TRADING WITH CHINESE COMPANIES.
You disagree, we disagree.
One of the benefits of the whole SEC/NASD regulatory regime is the control of fraud on investors. Whether Luckin is Chinese or not, they falsified 3/4 of last year’s sales.
I could see how you might say that the best course is to just publicize their fraud and let investors find a price. But, don’t we have multiple levels of increasingly dodgy OTC stocks here, and the Vancouver exchange in Canada for that? Listing on the major exchanges (NYSE and NASDAQ) ought to imply that at least sometime, maybe only once, the company appeared to be what it said it was.
Anyway, I just read that Luckin will be open for trading tomorrow morning. The fraud is one factor that will affect prices, the threat of delisting is another. Should be an interesting open for LK stock.
> You disagree, we disagree. <
I was just kidding there. I actually agree with Nasdaq. If they kicked every ChiCom company of their list, I’d be more than happy. Because if that ChiCom company isn’t lying now, they’ll surely be lying later.
>> I was just kidding there
Oh, sure.
BTW, the reopening of trading for the stock will be at 7AM EDT, which means it will only be accessible through extended hours trading for several hours before the normal market opening. Any big holders are going to be unloading first thing! (IMHO)
I really was just kidding! The last time I made a serious comment here on Free Republic was in the spring of 2012. I said something about how bad a candidate Mitt “Mittens” Romney was.
By “Oh, sure”, I meant, “I get it, I understand.”
As for Romney... he’s improved with age, like lutefisk.
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