Ruixing closed down more than 30% on Friday and fell nearly 70% in three days. The total market value is less than US $ 400 million

News on May 23, Beijing time,
Ruixing Coffee
Friday’s close fell again by 30.85 %% to close at $ 1.39, with a total market value of only $ 350 million. Ruixing Coffee’s stock price rose to a maximum of US $ 51.38 in January, and its market value once exceeded US $ 12 billion.
Ruixing Coffee resumed trading on Nasdaq on Wednesday. The stock of Ruixing Coffee closed at $ 2.82 on the same day, a drop of 35.76%. Ruixing Coffee previously announced that it had received a delisting notice from the NASDAQ exchange on May 15. The company plans to require a hearing, and will continue to list on the Nasdaq before the hearing.
Earlier reports said that investors ’litigation against Ruixing is in progress. According to reports, there are currently 18 different law firms that have submitted applications to lead the plaintiff. Recently, 12 companies have voluntarily withdrawn due to insufficient funds of the plaintiff, and the remaining six agents represent the plaintiff.
At the same time, Ruixing Coffee closed stores and layoffs information flowed into the market. In this regard, Ruixing Coffee said that it is currently “closing and transferring” individual stores with poor benefits or overlapping customer coverage. Layoffs are the transfer and optimization of personnel involved in individual departments. In fact, it is a complicated and time-consuming process from receiving a notification on a NASDAQ listed company to being delisted. If a listed company delists from the sector and investors still have n’t sold their stocks, they can only go to the OTC securities market for trading, which is less liquid.
Ruixing Coffee was established in October 2017, and was listed on the NASDAQ in the United States 18 months later, creating the fastest listing record for domestic Internet companies, and it is widely sought after by institutional investors in Europe and the United States. However, the good times are not long. On the evening of April 2, Ruixing issued a “self-explosive” financial fraud, admitting that there were counterfeit transactions between the second quarter and the fourth quarter of 2019, involving sales of approximately 2.2 billion yuan. Rui Xing said that since the second quarter of 2019, the company’s chief operating officer (COO) and director Liu Jian, as well as several employees who reported to him, have engaged in certain misconducts, including fabrication of certain transactions.
Editor in charge: Zhang Yujie SF107