Luckin Coffee Gets Delisting Notice from NASDAQ

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FILE - In this Feb. 6, 2020, file photo trader John Doyle works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Friday, Feb. 21. (AP Photo/Richard Drew, File)

Luckin Coffee (LK) is being delisted from the NASDAQ.

According to the company, the determination to delist included (i) public interest concerns as raised by the fabricated transactions disclosed by the Company in a Form 6-K on April 2, 2020, pursuant to Nasdaq Listing Rule 5101; and (ii) the Company’s past failure to publicly disclose material information, citing a business model through which the previously disclosed fabricated transactions were executed.

However, the company does plan to request a hearing before the NASDAQ panel within the next 30 to 45 days of the meeting request.

All because the company decided to play games, and fabricate $310 million in sales.

What made matters worse is the company initially said short seller accusations of fraud were false.  In fact, after an anonymous 89-page report was shared by Muddy Waters, the company issued a release calling it “misleading and false,” adding the company, “firmly stands by its business model and is confident in benefiting from the strong growth of China’s coffee market in the future. Luckin Coffee’s pioneering business model has enabled the Company to become the leading and fastest growing player driving coffee consumption in China.”

In my opinion, it’s doubtful the LK stock will ever see the light of day again.

 

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