Youngevity delisted from NASDAQ over filing irregularities
Youngevity, a publicly traded MLM company under the stock code YGYI, has been delisted by The Nasdaq Stock Market.
The decision follows a hearing by NASDAQ, finding that Youngevity failed to comply with filing requirements.
As per a November 19th Youngevity press-release, Youngevity failed to file it’s annual 2019 report, as well as reports for the first two quarters of 2020.
As a result of the Panel’s decision, Nasdaq will suspend trading in the Company’s securities effective at the open of business on Friday, November 20, 2020 and indicated that it intends to file a Form 25 Notification of Delisting with the Securities and Exchange Commission (the “SEC”).
Why Youngevity is behind with their financial filings is a mystery.
Steve Wallach, CEO of Youngevity International, Inc stated, “We are in the process of preparing a shareholder communication letter which will provide an update on recent progress that has been made at the Company including business highlights, and our plan to become current in our financial reporting and relist on Nasdaq or another national securities exchange.”
Last month Youngevity’s long-standing accounting auditor quit.
Mayer Hoff McCann, who had worked with Youngevity since 2011, claimed ‘the internal controls necessary for Youngevity to develop reliable consolidated financial statements do not exist’,
Because of this, the firm stated it could ‘no longer be able to rely on management’s representations.’
Perhaps there’s a clue or two in that.
Even if the company had remained listed, there aren’t many buyers for shares in a company where the auditors have said there is “substantial doubt” over whether the company can avoid going bust.
Unless of course there’s a load of MLM punters who’ve been told by their upline that they’ll be able to retire on their YGYI shares (around the same time as they can retire after building their own downline to Black Crown Megazoid rank).