The scandalized café has decided not to contest the two deregistration notices it received from Nasdaq, which means that the action will be suspended before the market opens on Monday and that the shares will eventually be delisted.
Get out while you can
It was a rapid and ignominious fall Starbucks wannabe. Just over a year ago, its IPO saw it debut at the top of its expected price range, and the stock eventually tripled, reaching more than $ 51 per share in January.
But the decline came quickly after allegations of accounting fraud emerged and subsequent default by senior executives. Since then, Luckin has been in a spiral and although he had a brief bounce from the dead cat earlier this week as he prepared to respond to Nasdaq radiation notices, the cafe notified the exchange on Wednesday that he was withdrawing his request for a hearing which had been scheduled for yesterday.
Although the actions are technically suspended Monday morning until the expiration of all call periods, Luckin Coffee is not fighting, it is just a formality before the withdrawal from stock.
It is likely, however, that Chinese coffee will be traded over-the-counter on the so-called pink leaves after radiation. The requirements are much less stringent, which makes these actions a risky investment.