LK - Will Luckin Coffee Stock Ever Trade Again?
Investors in Luckin Coffee (NASDAQ: LK) haven't been able to catch a break lately. After having denied allegations from a short-selling specialist early in 2020 as being "unsupported speculations and malicious interpretations of events," the Chinese coffee company announced on April 2 that it would conduct an internal investigation into fraud allegations concerning large fabricated transactions. That sent share prices down more than 80%.
In the aftermath of those allegations, Luckin shareholders had to deal with another problem: a trading halt. Before the market opened on Tuesday, April 7, the Nasdaq Stock Market halted trading in Luckin Coffee shares. That prevented shareholders from selling off their stock, as well as keeping would-be buyers from investing in the coffee company. With the trading halt having lasted for the remainder of the week, the question many people are asking is whether they'll ever see Luckin Coffee's stock trade on the public markets again.
Image source: Luckin Coffee.