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Woes Continue for SSLJ.com as 4 Directors Resign

The current filings by SSLJ continue a string of setbacks over the past year for the company after it completed its IPO last February, selling 4 million shares at $5 per share.

Peter H. Frank
    Jan 11, 2019 5:26 PM  PT
Woes Continue for SSLJ.com as 4 Directors Resign

SSLJ.com Ltd. disclosed in a filing today that four of its directors have resigned after serving less than three months on the board, and that the Nasdaq Stock Market has again warned it about a possible delisting from the exchange. 

The Wuhan-based company, an online provider of home decoration services and products, said that three directors submitted their resignations on Dec. 26 to be effective Jan. 3. Each of the three, Sheve Li Tay, Yingxue Wang and Jun Huang, resigned for personal reasons unconnected to the company, SSLJ said. 

Yesterday, an additional director, Zijian Wu, also resigned, effective immediately, the company said. Similar to the others, Wu resigned for personal reasons, according to the filing with the Securities and Exchange Commission. 

The four directors had been appointed at the end of October. 

In addition, in a separate SEC filing today, SSLJ said it received a notice of deficiency from Nasdaq on Jan. 7, warning the company that it had not filed its financial information for the six months ended June 30. The company has until March 8 to submit a plan to regain compliance, the company said. 

The current filings by SSLJ continue a string of setbacks over the past year for the company after it completed its IPO last February, selling 4 million shares at $5 per share.

The company, which saw its stock price briefly climb to $5.75 last spring, announced soon after going public that it had teamed up with JD.com Inc. (Nasdaq: JD) to have its products sold on the giant online retailer's site.

However, by July, the company saw its stock price plunge by more than half after its chairman and chief executive officer suddenly resigned. Despite the appointments of a new chairman and chief financial officer, the company continued to flag as its accounting firm resigned and some filings with the Securities and Exchange Commission were restated.

In August, the company received a different deficiency notice from Nasdaq officials regarding the fact the bid price of its shares had been below $1 per share for the previous 30 days. 

SSLJ closed today at 46 cents per share, up 5 cents.

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Stock price of SSLJ.com over the past 12 months. (Source: Thomson Reuters Eikon)

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