Nas­daq to delist Wins for not meet­ing share­holder rules

New Straits Times - - Business -

NEW YORK: Wins Fi­nance Hold­ings Inc, the Chi­nese loan guar­an­tor that couldn’t ex­plain a 4,555 per cent surge in its stock, is set to be delisted from the Nas­daq Stock Mar­ket, which cited vi­o­la­tions of ex­change rules re­lated to its share­holder base.

Nas­daq said Wins didn’t meet reg­u­la­tions re­quir­ing it to have at least 300 share­hold­ers who own 100 shares.

The ex­change’s de­ci­sion was also based on “the mak­ing of al­leged mis­rep­re­sen­ta­tions by the com­pany re­lat­ing to the 300 round-lot share­holder re­quire­ment”, as well as pub­lic in­ter­est con­cerns, said Wins.

Wins plans to re­quest a hear­ing to ap­peal the de­ci­sion.

At one point, the stock had soared as much as 4,555 per cent from its de­but on Nas­daq in 2015.

Its mar­ket value sur­passed US$9 bil­lion (RM38.61 bil­lion) in Fe­bru­ary, about four times as much as Lend­ingClub Corp, an on­line lender that had 50 times the rev­enue as of March.

Wins, which guar­an­tees loans for small busi­nesses in China and leases equip­ment to them, lost nearly all of its mar­ket value af­ter a re­port in March on the mys­te­ri­ous gain in its shares. The stock then spiked in June, and the com­pany again said it didn’t know why.

It is un­clear what Wins’s Nas­daq re­moval will mean for the com­pany’s sale to Freeman Fin­Tech Corp, a Hong Kong-based firm that agreed in De­cem­ber to buy the founder’s ma­jor­ity stake for a large dis­count. Bloomberg

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