China’s Kingold Jewelry Inc fell by 27% on the Nasdaq stock exchange on Wednesday after the company said it would voluntarily delist its shares.
The plunge means Kingold‘s Nasdaq-traded shares have lost almost 60% of their value since a report in Chinese business media in June alleged it had obtained loans using fake gold bars as collateral.
In that report, Kingold chairman Jia Zhihong denied any wrong-doing. The company did not immediately respond to a Reuters request for comment on Wednesday.
“The decision to delist from Nasdaq resulted from the board of directors’ review of numerous factors, particularly the cost and feasibility of ongoing compliance with the Nasdaq listing requirements and the company’s current financial condition,” Kingold said in a filing on Wednesday.
The company said it was twice informed by Nasdaq, on June 30 and July 2, that it was not in compliance with reporting requirements and a plan it submitted to regain compliance was rejected by the exchange.
“As such, the company understands that it is likely Nasdaq will commence procedures to delist the company’s common stock,” Kingold said, adding that its board decided not to pursue an appeal and to delist voluntarily.
Kingold said it expected trading in its shares to be suspended from Aug. 21, with the delisting effective Aug. 31.