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What Happened to HF Foods Group?

Ticker: HFFGSPAC Year: 2017Merger: 2019

Return

-82.3%

Current Price

$1.77

Peak Price

$35

Trust Size

$542M

Summary

HF Foods Group is a specialty food distributor serving Asian restaurants and other foodservice customers across the United States, offering fresh produce, frozen food, and dry goods.

What Happened

HF Foods went public through a SPAC merger in 2018 and grew rapidly through acquisitions of other Asian food distributors. However, the company became embroiled in an SEC fraud investigation, with the SEC charging HF Foods and its founders with accounting fraud including creating fictitious lines of credit and concealing liabilities in connection with the original SPAC transaction. The stock has fallen dramatically from its highs.

Timeline

2017-06-26

S-1 Registration Filed

2019-10-02

Merger Proxy Filed (DEFM14A)