Luckin Coffee needs to perk up today.
The Chinese coffee giant’s stock is getting killed due to a sell-off amid concerns that the company will be delisted. The stock is down more than 35% in mid-morning trading.
It last traded on the Nasdaq on April 6, when it was halted in the wake of an accounting scandal. Shares closed that day at $4.39, but are now down to $2.84. As recently as January, the stock was trading at over $50.
The coffee shop chain is considered the Starbucks of China. It opened thousands of locations in a country still mastering Western ways of spending disposable income.
The Beijing-based company revealed on Tuesday that Nasdaq sent a delisting notice last week for allegedly faking $310 million in transactions in its annual report. The board fired CEO Jenny Zhiya Qian and COO Jian Liu last week.
Luckin Coffee, which was founded in 2017, said it plans to request a hearing with Nasdaq, so it can remain listed on the exchange. According to the notice, a hearing would typically be scheduled 30 to 45 days after a company asks for one.