The Nasdaq Exchange issued a second delisting notice.
The annual report of dystocia may become the last straw for the “crushed camel”.
Before the US stock market on June 23, Ruixing Coffee issued an announcement that the company received a written delisting notice from Nasdaq because it failed to submit the 2019 annual report before the prescribed deadline. This is the second time that Ruixing Coffee has received a delisting notice since May 15 due to the disclosure of false transactions that caused public concern and the Nasdaq Exchange decided to delist it.
Affected by this news, Ruixing Coffee’s US stocks changed from rising to falling before the market on June 23, and the decline once expanded to 20%. As of the close of US stocks on June 23, Ruixing Coffee declined 12.26% to $2.79. Since the announcement of financial fraud, the market value has erased nearly 90%, leaving only $706 million.
Ruixing Coffee said in the announcement that it has been exploring possible ways to submit its annual report as soon as possible. However, the company failed to submit its annual report due to the delay in the preparation of the financial statements due to the new crown epidemic and the internal investigation previously disclosed.
This is not the first delisting notice received by Ruixing. On May 19, Ruixing Coffee issued an announcement saying that it received a delisting notice from NASDAQ on May 15. The reason for delisting was mainly due to the false transactions disclosed by the company on April 2 which triggered public interest concerns, and failed to disclose valid information in the past, and also conducted false transactions through this business model.
On the day of receiving the first delisting notice, Ruixing Coffee requested a hearing. Before the hearing, the company will continue to list on the NASDAQ. According to the notice, the hearing is usually arranged about 30 to 45 days after the date of the hearing request.
In the news, according to Reuters, citing insiders, Ruixing Coffee chose investment bank Houlihan Lokey as its consultant to provide financial and strategic advice. It is reported that the investment bank had previously served as a financial adviser to the privatization of 58 cities.