NEW YORK - Luckin Coffee Inc received a delisting notice from Nasdaq, another blow to the once fast-growing Chinese start-up that's now grappling with a deepening financial scandal.
The US exchange cited concerns over Luckin's fabricated transactions and the company's past failure to publicly disclose material information, Luckin said in a regulatory filing on Tuesday . It will remain listed pending the outcome of an appeal hearing, which is expected to be scheduled within 45 days of a hearing request.
The disclosure comes amid heightened economic tension as Nasdaq plans to tighten listing rules for companies from China, France and other markets with national security or other laws restricting US regulators' access to information. The stock exchange also plans to impose a minimum fundraising size and float requirement, a filing shows.
Luckin, whose shares have been suspended since early April, fired its chief executive officer last week, reflecting increased turmoil at a company that was once considered among China's brightest growth stories. The coffee chain is now facing scrutiny from regulators in both the US and China over fabricated transactions representing a significant portion of the company's total revenue. Its offices in China were raided by the authorities last month as part of a multi-agency investigation into its finances, Bloomberg has reported.
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