Shares of Hong Kong-based ready-to-cook and ready-to-eat Asian food producer DayDayCook (DDC) rose nearly 10% on Thursday, November 21, following an announcement that the New York Stock Exchange had granted the company an extension to file its 2023 annual financial report. The new deadline is February 4, 2025. DDC has spent half its brief history as a public company just trying to comply with NYSE listing standards and avoid delisting.
Details
DayDayCook stock climbed nearly 10% on the NYSE on Thursday to close at $0.20 per share. However, it tumbled 8% after the close and has continued to decline today, Friday, November 22, posting slight losses in premarket trading as of this writing.
Before the open on Thursday, the company revealed that the NYSE had extended the deadline to file its 2023 annual financial report and any other delayed forms with the U.S. SEC. The new deadline is February 4, 2025. The NYSE will monitor DDC’s progress with interim milestones and reserves the right to “accelerate trading suspension” and initiate delisting procedures.
Context
DDC, a specialist in ready-to-cook and ready-to-eat Asian foods, has had a short but turbulent history as a public company. It debuted in November 2023, but its IPO drew little interest from investors, pricing at $8.50 per share — 10% below the lower end of the indicated range in the prospectus. By early December of that year, the stock had lost a third of its value. The company attempted a share buyback to stabilize the share price, but it did not work. DDC shares are now trading nearly 98% below their IPO price.
In May 2024, the NYSE notified DDC that it was out of compliance with listing standards due to its failure to file a 2023 annual report on time. The company retained an accounting firm in August, but it was dismissed after raising concerns about allegations from a former service provider. The allegations included undisclosed related-party transactions, improper value-added tax transactions, and other potential violations. Before these concerns could be addressed, DDC dismissed the firm and has since appointed a new auditor, pending shareholder approval at a virtual shareholder meeting scheduled for November 29.
Another NYSE issue is DDC’s low share price, which has fallen below the exchange’s minimum listing requirement of $1 per share.
Initially, the NYSE gave DDC six months to resolve these issues but later accepted the company’s plan to regain compliance by October 23, 2025, subject to quarterly monitoring.
