China XD Plastics Company Limited (CXDC) shares increased 0.39% in after-hours on Friday, September 10, 2021, and closed the weekly trading at $7.69. In the regular trading session of Friday, CXDC’s stock gained 0.13%. CXDC shares have fallen 51.42% over the last 12 months, and they have moved down 7.58% in the past week. Over the past three months, the stock has lost 13.17%, while over the past six months, it has declined 51.42%.
Let’s have a look at its recent news and developments.
CXDC delisting letter from Nasdaq
On September 10, 2021, China XD Plastics Company Limited (CXDC) received a letter from the Listing Qualifications Department of the Nasdaq Stock Market stating that Nasdaq’s staff has determined to deny the Company’s request for continued listing on Nasdaq.
The Company intends to request a hearing before a Nasdaq Hearings Panel no later than September 14, 2021, to seek an exception period in which to complete its filings and thereby regain compliance with listing standards. The Company’s request for a hearing will automatically suspend the delisting of its common stock for 15 calendar days from the deadline to request a hearing, or until September 29, 2021.
CXDC Non-Compliance notice from Nasdaq
On August 31, 2021, China XD Plastic Company Limited (CXDC) received a letter from the Listing Qualifications Department of the Nasdaq Stock Market notifying the Company that it was not in compliance with requirements of Nasdaq Listing Rule 5250(c)(1) as a result of not having timely filed its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021 and because the Company has not yet filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
Class Action Suit Against CXDC
On March 2, 2021, Squitieri & Fearon LLP filed a class action seeking to represent stockholders of China XD Plastics Company Limited (CXDC) purchased its stock before September 30, 2020.
According to the law firm, China XD and certain of its officers violated the Securities Exchange Act of 1934.
The complaint alleges that, throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public and/or failing to disclose adverse facts about the Company’s business, operations, and prospects.
Specifically, defendants engineered the Merger to benefit China XD’s founder Han and the Buyer Group without regard for China XD’s public stockholders. Accordingly, this action seeks, inter alia, to enjoin the proposed closing of the merger and rescinding the vote approving the Merger.
Conclusion
Well, the company needs to address its pending financial filing matters as soon as possible otherwise it can lose its Nasdaq listing permanently. The recent plummeting was due to the recent notice from Nasdaq which the company should take seriously.
