OneSmart International Education Group Limited (ONE) stock experiences a sudden decrease of 40.13% in the premarket after the company announces Approval of Business Suspension and Resignation of Independent Directors. However, the last trading session closed at $0.4002 with an increase of 4.49%.
Approval of Business Suspension and Resignation of Independent Directors
ONE announces the Approval of Business Suspension and Resignation of Independent Directors on 12th October 2021. ONE reported that the Company’s board of directors approved the suspension of all of the Company’s education programmes and learning centres in China. This owed to challenges presented by the latest changes in the relevant policies and legislative landscape in China’s private educational service industry, as well as the ONE’s current hardships. Liang (Mason) Xu and Yan Gong, both independent directors, stepped down from the board of directors, according to ONE. In due time, ONE will nominate two new independent directors.
Receipt of NYSE Non-compliance Letter Regarding ADS Trading Price
On 4th August 2021, ONE stated that it has received a letter from the New York Stock Exchange. NYSE has alerted OneSmart that it has failed to meet the NYSE’s compliance requirements in relation to the performance of OneSmart’s American depositary shares trading price.
A firm is deemed out of compliance with NYSE rule 802.01C if the average closing price of security reported on the consolidated tape is less than US$1.00 for a period of 30 trading days. After being notified, the corporation has six months to raise its share price and average share price over $1.00. To resolve this problem, ONE plans to keep an eye on the market circumstances of its listed securities and is still weighing its alternatives.
ONE Stock Announces Change in Board of Directors and Management
ONE reported a change in the board of directors and management on 26th June 2021. Mr. Honggang (Greg) Zuo, the Company’s director, chief financial officer, and chief strategy officer, has resigned owing to family obligations. At the same time, Mr. Qiang (Eason) Zhou, vice president of finance, will report directly to Mr. Steve Zhang, ONE’s CEO. Mr. Zhou joined OneSmart in 2008 and has held several positions within ONE company. Mr. Zhou is now responsible for ONE’s corporate finance, tax, financing, and internal control. Prior to 2008, Mr. Zhou worked for a number of media businesses in a variety of financial leadership capacities. Mr. Zhou is a qualified internal auditor and has more than 20 years of financial management expertise.