Luckin Coffee receives NASDAQ delisting warning to hold hearing

BEIJING, May 19 (Beijing time) evening news, according tomedia reports, Luckin Coffee (Nasdaq: LK) announced today that it has received a written notice from the Nasdaq Stock Market Listing Qualification Staff, the staff member has decided to remove luckin coffee stock from the NASDAQ market.

Luckin Coffee receives NASDAQ delisting warning to hold hearing

In response to the de-listing decision, NASDAQ staff listed two basis points: 1) Luckin Coffee filed form 6-K documents on April 2, 2020, which raised public interest concerns about the false transactions disclosed in the documents, and 2) Luckin Coffee had a history of undisclosed material information.

Luckin Coffee said it plans to ask the Nasdaq Hearing Panel to hold a hearing. Luckin Coffee shares will continue to trade on the NASDAQ market until the outcome of the hearing.

Luckin Coffee also noted that “there is no guarantee that the hearing panel will approve its request to continue listing.” According to the notice, hearings are usually scheduled to take place approximately 30 to 45 days after the requested date of the hearing. “

On April 2 this year, Luckin Coffee announced the formation of a special committee to launch an internal investigation into the fabrication of transactions by the company’s COO Liu Jian and several other employees.

Luckin Coffee said that during the audit of the company’s consolidated financial statements for the fiscal year ended December 31, 2019, a number of issues raised concerns from the board, and that the special committee would oversee internal investigations into those issues.

Luckin Also said at the time that there was information that, starting in the second quarter of 2019, Liu and several employees who had reported to him had engaged in certain misconduct, including fabricating certain transactions.