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Invest in China! Brings great returns!! Especially with Fuckin coffee!!!
Luckin Coffee Shares Plunge Following Nasdaq De-Listing Notice For Scandal-Hit Starbucks Rival
Luckin Coffee, an erstwhile China rival to Starbucks that was once valued at $12 billion, is now trading with a market cap of just $700 million after revealing a 'fake sales' scandal earlier last month.
MARTIN BACCARDAXUPDATED:MAY 20, 2020 9:38 AM EDTORIGINAL:MAY 20, 2020
Luckin Coffee (LK) - Get Report shares plunged Wednesday after the scandal-hit Starbucks (SBUX) - Get Report rival resumed trading on the Nasdaq just one day after exchange officials moved to remove it from the benchmark.
Luckin said Monday that the Nasdaq based its de-listing request on "public interest concerns as raised by the fabricated transactions" that came to light in early April, and "past failure to publicly disclose material information, citing a business model through which the previously disclosed fabricated transactions were executed."
Luckin said it wants a hearing with officials to plead its case, and noted that shares will remain trading until its request is granted.
Luckin has said it is "actively cooperating" with the State Administration for Market Regulation in Beijing after it reportedly raided the company's headquarters last month, a statement that followed a move by the China Securities Regulatory Commission to investigate fraud claims linked to Luckin's April 2 admission that around RMB2.2 billion ($310 million may have been fabricated in a scheme linked to its former COO.
Luckin shares plummeted more than 35% in early trading Wednesday to change hands at $2.87 each, giving it a market value of just over $700 million.
Beijing-based Luckin listed on the Nasdaq in May of last year with a market value of $4.2 billion after pricing its IPO at $17 each. It raised another $1.1 billion in a secondary offering in early January.
At its peak, Luckin traded at just over $50 a share with a market value of $12 billion.
Earlier this month, the Beijing-based group said CEO Jenny Zhiya Qian, as well as chief operating officer Jian Liu were fired after its internal investigation "brought to the attention of the Board evidence that sheds more light on the fabricated transactions" the company detailed in early April.
Luckin said at the time that it is assessing the impact of the investigation into the fake sales, which is traces back to the second quarter of 2019 and is linked to its COO, on its current financial statements.
Founded in 2017 by its current CEO, Qian Zhiya, Luckin has around 4,500 coffee outlets in China as it goes head-to-head with Starbucks in the world's biggest coffee market.
Luckin, which is backed by BlackRock BLKB and Singapore's powerful sovereign wealth fund, estimates consumption will rise to 15.5 billion cups by 2023, nearly 80% higher than last year's record levels.
Luckin Coffee Shares Plunge Following Nasdaq De-Listing Notice For Scandal-Hit Starbucks Rival
Luckin Coffee, an erstwhile China rival to Starbucks that was once valued at $12 billion, is now trading with a market cap of just $700 million after revealing a 'fake sales' scandal earlier last month.
MARTIN BACCARDAXUPDATED:MAY 20, 2020 9:38 AM EDTORIGINAL:MAY 20, 2020
Luckin Coffee (LK) - Get Report shares plunged Wednesday after the scandal-hit Starbucks (SBUX) - Get Report rival resumed trading on the Nasdaq just one day after exchange officials moved to remove it from the benchmark.
Luckin said Monday that the Nasdaq based its de-listing request on "public interest concerns as raised by the fabricated transactions" that came to light in early April, and "past failure to publicly disclose material information, citing a business model through which the previously disclosed fabricated transactions were executed."
Luckin said it wants a hearing with officials to plead its case, and noted that shares will remain trading until its request is granted.
Luckin has said it is "actively cooperating" with the State Administration for Market Regulation in Beijing after it reportedly raided the company's headquarters last month, a statement that followed a move by the China Securities Regulatory Commission to investigate fraud claims linked to Luckin's April 2 admission that around RMB2.2 billion ($310 million may have been fabricated in a scheme linked to its former COO.
Luckin shares plummeted more than 35% in early trading Wednesday to change hands at $2.87 each, giving it a market value of just over $700 million.
Beijing-based Luckin listed on the Nasdaq in May of last year with a market value of $4.2 billion after pricing its IPO at $17 each. It raised another $1.1 billion in a secondary offering in early January.
At its peak, Luckin traded at just over $50 a share with a market value of $12 billion.
Earlier this month, the Beijing-based group said CEO Jenny Zhiya Qian, as well as chief operating officer Jian Liu were fired after its internal investigation "brought to the attention of the Board evidence that sheds more light on the fabricated transactions" the company detailed in early April.
Luckin said at the time that it is assessing the impact of the investigation into the fake sales, which is traces back to the second quarter of 2019 and is linked to its COO, on its current financial statements.
Founded in 2017 by its current CEO, Qian Zhiya, Luckin has around 4,500 coffee outlets in China as it goes head-to-head with Starbucks in the world's biggest coffee market.
Luckin, which is backed by BlackRock BLKB and Singapore's powerful sovereign wealth fund, estimates consumption will rise to 15.5 billion cups by 2023, nearly 80% higher than last year's record levels.
that's not much better... suckin fuckin luckin coffee. what next? 
