MF - Missfresh gets no funding from Shanxi Donghui adopts business adjustments

July, 28 2022 05:11 PM Missfresh Limited

Missfresh ( NASDAQ: MF ) said Thursday it did not receive any funding from Shanxi Donghui under a RMB 200M investment deal .
As a result, MF has to adopt significant adjustments to its business strategy, including a temporary shutdown of its on-demand Distributed Mini Warehouse service and staff optimization.
These adjustments will have a material and adverse impact on MF's financial performance.
The on-demand DMW business contributed ~85% of MF's total revenue for the nine months ended Sept. 30, 2021.
MF will take a call later on whether it should re-open its on-demand DMW business depending on its financings and business operations.
MF shares plummeted earlier in the day , ending ~43% lower, after the Chinese grocery delivery firm's staff was reportedly informed that MF couldn't pay their salaries for Jun. and Jul.
The stock slipped 3.1% postmarket after MF's announcement.
MF shares have slumped ~97% YTD.

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