The trading of the shares of the Chinese chain of coffee shops Luckin Coffee, popularly known as the ‘Chinese Starbucks’, will be suspended this Monday by Nasdaq, where they will no longer be listed, after the manager of the US technology market decided to expel the Asian company for falsifying its accounts.
As confirmed by the Chinese company, the trading of its shares will be suspended at the opening of the session on Monday, June 29, after which Nasdaq will register the request for its definitive exclusion from the US electronic parquet.
“On June 24, the company notified Nasdaq of its decision to withdraw its appeal and not attempt to reverse or suspend the decision to exclude the company from the Nasdaq Global Select Market,” Luckin Coffee reported.
Thus, Nasdaq has informed the Chinese firm that its actions “will be suspended at the opening of the session on June 29, 2020”, after which Nasdaq will process the request for exclusion once the deadline for filing appeals expires. .
Founded in 2017, Luckin Coffee made the leap to the Nasdaq electronic park in May 2019, after raising 651 million dollars (581 million euros) with its IPO, which initially had a warm welcome from investors.
However, the company was embroiled in a financial scandal this spring after unveiling during the 2019 audit process a series of accounting manipulations in reference to allegedly fraudulent transactions for an aggregate amount of 2.2 billion yuan (277 million euros).
In fact, last May Luckin Coffee decided to fire Jenny Zhiya Qian and Jian Liu, until then their CEO and CFO, respectively, for the accounting irregularities uncovered in early April.
The company also plans to hold an extraordinary general shareholders’ meeting on July 5, while the board of directors will meet on Thursday to consider the proposal for resignation of the current chairman of the board, Charles Zhengyao Lu.
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