Yangtze River Port & Logistics Ltd YRIV Stock News

Yangtze River Port and Logistics Ltd (NASDAQ: YRIV) is not trading at all today. Unfortunately, the delisting process to remove the stock from the NASDAQ is underway.

In previous articles, I suggested that the company had a strong chance of maintaining its listing as the delisting seemed to be heavily associated with a research report by Hindenburg Research.

Unfortunately, I have to admit that I was wrong. Yesterday, the company announced that it received notice from the NASDAQ that it would be delisted. Since, I have received several emails asking what’s next. Here are my thoughts:

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YRIV Stock Delisting Is Not Likely To Be Overturned On Appeal

In the SEC filing that announced the delisting, Yangtze River said that it has the option to submit an appeal to the NASDAQ within 15 days of the listing decision, a decision that was made on August 16, 2019.

In the SEC filing, the company made no statement with regard to the company’s plan to appeal the decision. Nonetheless, even if the decision were to be appealed, the delisting would likely continue. Unfortunately, it seems as though the NASDAQ isn’t going to accept the company’s explination with regard to listing deficiencies.

Do I Still Think That There’s Something To Look Forward To Here?

This is a question that I struggle with. First and foremost, the NASDAQ doesn’t find joy in delisting companies. It takes evidence of listing deficiencies for the exchnage to make this type of decision as delisting is very serious.

Unfortunately, I don’t have access to meeting minutes or data from the SEC’s investigation. I’m not sure what they found and just how seriously it will affect shareholders.

On the other hand, there’s a strong bullish argument here that suggests that in the long run, the company, and its stock, will be fine. The argument hinges on the lawsuit that YRIV filed against Hindenburg Research and other parties that it said spread false information for personal gain.

The argument is simple. Bringing the case to the court of law means that YRIV has decided to subject itself to internal and external investigations. The company will have to turn over documents, share everything. If there was blatant wrong doing taking place, why would the company subject itself to such a process, knowing that it would fall apart in the end?

The bullish argument is a simple one. The case against Hindenburg Research and other parties that took part in the production and marketing of their YRIV report suggests that the company has done nothing wrong. As such, Yangtze is likely to win the legal battle, proving itself and may re-uplist to the NASDAQ ahead.

The bearish argument, of course is a much more grim one. Should YRIV have filed suit in an attempt to delay the innevitable, and wrongdoing is uncovered through the investigation, the dramatic reduction in value could end with the stock at $0. Unfortunately, the NASDAQ’s decision to delist the company could validate this view.

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2 COMMENTS

  1. I trade via Robinhood and had almost $1,000 invested in this stock. If this begins trading OTC, does anyone know how to go about that? On the contrary, if it doesn’t end up trading on any exchange, how do I go about contacting the company since I can’t find their website anywhere? Any insight would be helpful. Thank you!

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