China's Luckin Coffee craters as trading resumes after delisting threat
Trading in Luckin Coffee shares was halted on April 7
Luckin Coffee plunged Wednesday as trading resumed for the first time since shares were halted on April 7.
The Xiamen, China-based beverage chain received a delisting notice from Nasdaq on Tuesday, more than a month after its April 2 announcement that its chief operating officer had fabricated as much as $310 million in sales last year. The company has not yet released its fourth-quarter results for 2019.
TRUMP GETS TOUGH ON CHINESE STOCKS IN CORONAVIRUS STANDOFF WITH BEIJING
Luckin Coffee did not immediately respond to FOX Business’ request for comment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| lk | NO DATA AVAILABLE | - | - | - |
Luckin priced its initial public offering at $17 a share on May 16, 2019. Shares rallied to a high of $50.02 on January 17, giving the Starbucks challenger a market capitalization of as much as $12.02 billion. Its value has since plummeted to $681 million, including Wednesday’s selloff.
CLICK HERE TO READ MORE ON FOX BUSINESS
Luckin’s resumption of trading comes amid calls for the U.S. to get tougher on Chinese companies listed on American stock exchanges. Currently, Chinese firms are not subject to the same investor-protection rules and accounting standards as U.S. companies.