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Luckin Coffee stock plunges after disclosing it received another delisting notice

Shares of Luckin Coffee Inc.
LK,
-18.23%

plunged 17% in premarket trading Tuesday, after the China-based coffee seller disclosed that it received last week an additional delisting notice from the Nasdaq for its failure to file its 2019 annual report. “The company has been working diligently to explore possible ways to file the Annual Report as soon as possible,” Luckin said in a statement. “However, the company has not been able to file the Annual Report due to the impact of the delayed financial statement preparation process caused by COVID-19 and the pendency of the previously disclosed internal investigation.” The company had received a delisting notice in May for “public interest concerns” given the “fabricated” transactions disclosed by the company, which led to the terminations of its chief executive and chief operating officer. Luckin’s stock has plummeted 91.9% year to date through Monday, while shares of rival Starbucks Corp.
SBUX,
-0.17%

has declined 14.2% and the S&P 500
SPX,
+0.86%

has slipped 3.5%.

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