Leading Chinese grocery retail platform Missfresh announced Saturday that it had received a notice dated June 2 from the Nasdaq, claiming that the closing bid price of the company’s American depositary shares (ADSs) during the previous 30 business days was below the minimum $1.00 per share set forth in Nasdaq’s listing rules.
After receiving such notices, companies are given a compliance period of 180 calendar days – in this case until November 29, 2022 – to regain eligibility, during which time the company’s ADSs will continue to be listed and traded on the Nasdaq.
Regarding the matter, Missfresh said that this notice will not affect the company’s business operations, and all reasonable measures will be taken to regain compliance within the prescribed grace period.
Missfresh was founded in 2014 and launched on the Nasdaq on June 25, 2021, with an issue price of $13. As of June 3, 2022, the daily share price of the company closed at $0.25, and its market value has shrunk from $2.585 billion on the first day of its listing to $58.89 million.
In 2021, Missfresh updated its “(A+B) x N” strategy, with “A” referring to instant retail in its front warehouse, “B” referring to its smart food market and “N” referring to its retail cloud. The strategy indeed met the firm’s need for retail transformation. Its retail cloud business has signed project cooperation with more than 50 retail enterprises across China. The smart food market business has also expanded to 20 cities.
However, on May 24 this year, Missfresh announced that it had received a notification letter from the Nasdaq Listing Qualification Department dated May 19, 2022, because the company failed to submit on time its annual report for the fiscal year ending December 31, 2021.
According to the company’s official data, from 2018 to 2020, its revenue was 3.547 billion yuan, 6.001 billion yuan and 6.13 billion yuan respectively, and net loss was 2.298 billion yuan, 3.096 billion yuan and 1.656 billion yuan respectively. In addition, its net loss in Q4 of 2021 is expected to be 720-750 million yuan, and the net loss in the year of 2021 is expected to be 3.737 billion-3.767 billion yuan.