If you have losses from investing in Wunong Net Technology Company Limited (WNW) contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at ssilver@silverlaw.com.
Wunong received written notification from the NASDAQ Stock Market LLC that because the company failed to file it’s annual report on Form 20F for the year ending on December 31, 2020, it was no longer in compliance with Listing Rule 5250(c)(1) for continued listing.
NASDAQ’s rules give the Company 60 calendar days to submit their plan to regain compliance. Should the plan be accepted, NASDAQ will grant the company an extension of up to 180 calendar days from the filing’s due date to regain compliance. In Wunong’s case, this would be November 15, 2021.
The company issued a press release announcing the notification from NASDAQ on May 19, 2021. In it, the Company advised its investors that it is “working aggressively to complete its audit,” submit its Form 20-F and regain compliance with NASDAQ’s requirements on or before the deadline. However, after the press release, Wunong’s stock price fell sharply during trading on May 20, 2021.
Just two months before, trading of Wunong’s stock increased around 27% after social media talk about the company, similar to the recent increases for GameStop and AMC Theaters on Reddit. However, this may be investors looking for a repeat of these anomalies.
After the stock started at $5 per share, it increased as high as $161 before dropping back down. NASDAQ briefly suspended trading on Wunong, but the stock increased again until this week.
Currently, 27% of Wunong shares are owned by the general public.
Wunong’s Initial Public Offering (IPO)
Just six months ago, in December 2020, the company issued a $30M IPO of 5,000,000 of its public shares. The shares were sold to the public at $5.00 per share, giving Wunong gross proceeds of $25,000,000. The underwriters also purchased 999,910 ordinary shares from a shareholder who sold for $4,999,550, topping the gross proceeds from this offering at $29,999,550. Boustead Securities, LLC and Brilliant Norton Securities Company Limited acted as lead underwriters for this firm commitment offering.
Wunong Is Not a Traditional Tech Company
Despite its name, Wunong is actually a Chinese food e-commerce company that uses its unique platform to sell specialty food products. The Company specializes in organics, pollution-free, non-GMO, green and heritage foods. Their target market seeks out healthy, nutritious, safe, high-quality foods that are GMO-free. These foods are sold through Wunong’s portfolio of well-known, trusted suppliers.
Are You An Investor In Wunong Net Technology Company Limited?
If you’re an investor in Wunong, you’re encouraged to contact Silver Law Group for additional information and to help us in our investigation.
Silver Law Group is a nationally-recognized class action law firm representing victims of investment fraud. Our attorneys represent investors in class action lawsuits against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.