Three Squirrels Suspends IPO Review, Food Safety Problem Are Biggest Obstacle, Insiders Say
Liao Shumin
DATE:  Oct 27 2017
/ SOURCE:  Yicai
Three Squirrels Suspends IPO Review, Food Safety Problem Are Biggest Obstacle, Insiders Say Three Squirrels Suspends IPO Review, Food Safety Problem Are Biggest Obstacle, Insiders Say

(Yicai Global) Oct. 27 -- Anhui Three Squirrels Electronic Commerce Co., which submitted its prospectus in April, has voluntarily applied to suspend the review of its initial public offering.

The status of Three Squirrels' review on the China Securities Regulatory Commission's website has changed to "review suspended," Beijing Business Today reported.

Most industry insiders believe that frequent food safety problems are the biggest obstacle on the road to Three Squirrels' listing.

The China Food and Drug Administration (CFDA) released a list of non-conforming food products found during sample inspections on Aug. 15. They discovered that Three Squirrels' pistachios contained 180 percent more mold than national standards allow.

On Oct. 20, the Anhui Food and Drug Administration unveiled the results of investigation that indicates that Three Squirrels produces food that does not meet food safety standards, did not test the raw materials it purchased according to the relevant provisions and has violated the relevant legal requirements. The Anhui Food and Drug Administration decided to confiscate CNY2,505.89 of illegal income from Three Squirrels and impose an administrative fine of CNY50,000 on the firm.

IPO suspensions are very common, and the resignation of the lawyer responsible for the work on Three Squirrels' review led to it being halted, a company insider told Beijing Business Today.

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Keywords:   Three Squirrels,FOOD SAFETY,IPO Application,Suspend