- Nanocap stock China Rapid Finance (XRF) plunges 31% after saying that changes requested to keep the company in full compliance with regulatory requirements may hurt its financial performance.
- It was unable to file its annual report by the extended deadline of May 15, 2019, and as a result isn't in compliance with continued listing requirements under NYSE rules.
- XRF has told lenders on its platform that it's transitioning its repayment structure to a monthly payment plan from a "full redemption when due."
- An exchange has been established for investors that prefer to sell their loans, although there's no guarantees that investors will be able to sell their loans and at what price they'll be able to sell them.
- XRF will continue to operate its marketplace lending platform and will concentrate on institutions as the primary funding source.
- It has also significantly downsized all parts of its operations relating to retail marketplace lending, other than collections.
- The company is evaluating certain strategic opportunities and fundraising options for the future of its business, in light of the current regulatory environment.
- Previously: China Rapid Finance names new CFO and technology chief (Mar. 29 2019)