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Missfresh Mired in Delisting Risk as Stock Price Plunges

June 19, 2023

On June 12, Beijing-based fresh produce e-commerce company Missfresh issued a statement confirming that it had been notified by Nasdaq on June 6 that the company’s American depositary shares would be delisted unless it makes a timely request for a hearing before the Nasdaq Hearing Panel.

Missfresh was founded in 2014 and has received investments from prominent entities such as Tencent, Tiger Global Management, Goldman Sachs, China International Capital, Lenovo and Vision Plus Capital. In June 2021, Missfresh successfully raised $300 million through an initial public offering in the United States, with the IPO valuation peaking at $3.2 billion. However, since its listing, the company’s stock price has experienced a continuous decline, even dropping below the IPO price. Since May 1, the stock has been trading at less than $1 per share, standing at only $0.60 per share at the time of writing following the news of the impending delisting, with a total market capitalization of $4.71 million.

According to Missfresh’s annual financial report for 2021, the company earned revenues of 6.00 billion Chinese yuan ($838 million), 6.13 billion yuan ($856 million) and 6.95 billion yuan ($970 million) in 2019, 2020 and 2021, respectively. However, during the same years, it incurred net losses of 2.91 billion yuan ($406 million), 1.65 billion yuan ($230 million) and 3.85 billion yuan ($538 million), respectively. In addition, the number of employees decreased from 1,677 at the end of 2021 to only 55 as of the reporting date in late 2022. Missfresh has not yet disclosed its financial results for 2022.

In the announcement, Missfresh stated that it could not guarantee approval from the hearing panel of the continued listing request, nor could it ensure that it would be able to demonstrate compliance with applicable listing standards within any extended time granted by the hearing panel.

Image: Pixabay

This article was translated from Chinese. Read the original article.

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