Luckin Coffee Shares Plunge After Nasdaq Delisting Notice

Luckin coffee shares dive (Source: Vlad Bagacian/Pexels)

Shares of Chinese coffee chain Luckin Coffee dropped 17 percent during premarket trading on Tuesday after the company announced it received a delisting notice from Nasdaq.

Luckin said it received the notice on June 17 for failing to file its annal report for 2019 financial year. This is the company’s second delisting notice from Nasdaq.

“The Company has been working diligently to explore possible ways to file the Annual Report as soon as possible,” Luckin Coffee 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.”

SEE ALSO: Luckin Chairman to Face Criminal Charges Amid New Evidence in Fraud Probe

The company received a delisting notice in May after the disclosure of its fabricated transactions scandal, which led to the terminations of its CEO and COO.

Investors reportedly planned to oust Luckin Chairman Lu Zhengyao and other board members at an extraordinary general meeting scheduled for July 5.

Founded in 2017 by its current CEO, Qian Zhiya, the chain has more than 4,000 coffee outlets in China and was once valued at $12 billion.