MAC Assets Corp. Issues Open Letter to Shareholders, CBs, JPLs, and BOD of Luckin Coffee Inc.

Rhea-AI Summary

MAC Assets Corp., a minority shareholder of Luckin Coffee Inc. (OTC-PINK:LKNCY), has urged fellow minority shareholders to support the complete severance of ties with the previous management implicated in financial fraud. In a letter dated December 12, 2021, MAC Assets highlighted the detrimental impact of the former management on shareholder value and emphasized the company's current positive trajectory. They called for collective action to protect shareholder interests against any potential return of the previous management.

Positive

• Current management is seen as fostering sound development and long-term value creation for shareholders.

Negative

• Previous management involved in financial fraud caused significant losses and harmed minority shareholders.

HONG KONG--(BUSINESS WIRE)-- MAC Assets Corp., a minority shareholder of Luckin Coffee Inc., recently issued a letter to the Shareholders, Convertible Bondholders, Joint Provisional Liquidators and Board of Directors of Luckin Coffee to call for all minority shareholders to work together and support the Company completely cutting its relationship with the previous management.

Below is the full text of the letter:

Dear Shareholders, CBs, JPLs, and BOD of Luckin Coffee Inc.:

We, an institutional investor holding Luckin Coffee’s stocks, has been long paying attention to the development of Luckin Coffee (the Company). At the Extraordinary General Meeting of the Company on December 11, we supported and voted for the proposed amendments to the Memorandum and Articles of Association.

As a minority shareholder of the Company, we have noticed that the purposes of the amendments to the Memorandum and Articles of Association and the Shareholder Rights Plan (the “Poison Pill”) previously adopted by the Board of Directors are to prevent the previous management that involved in the Company’s financial fraud (the “previous management”) from acquiring the Company’s shares. Moreover, we have known from the capital market that the previous management has been trying to acquire the Company’s shares in covert ways.

1. The previous management has caused serious losses to the Company and caused damages to the benefits of minority Shareholders, thus we strongly oppose the previous management returning to the Company in any direct or indirect way.
2. Currently, the Company has been in a sound development, and is expected to create greater values for shareholders in the future. For the long-run development of the Company, we call for all minority shareholders to work together and support the Company completely cutting its relationship with the previous management.
3. In the meantime, we call for all minority shareholders to express your attitudes and boycott any act of the previous management that may hurt the healthy development of the Company by means, including but not limited to, sending a letter to provisional liquidators, custodians of creditors’ rights, the Company’s Board of Directors and other stakeholders, to protect our interests.

Sincerely,
MAC Assets Corp.
12.12.2021

View source version on businesswire.com: https://www.businesswire.com/news/home/20211212005144/en/

Name: Kristy Li

E-mail: Kristyli@chuhaimedia.com

Source: MAC Assets Corp.

FAQ

What did MAC Assets Corp. say about Luckin Coffee Inc. on December 12, 2021?

MAC Assets Corp. called for minority shareholders to support cutting ties with the previous management due to its involvement in financial fraud.

What is the stock symbol of Luckin Coffee Inc.?

LKNCY is the stock symbol for Luckin Coffee Inc.

Why does MAC Assets Corp. oppose the previous management of Luckin Coffee?

MAC Assets Corp. opposes the previous management because it caused significant losses to the company and harmed shareholder interests.

What are the implications of the letter sent by MAC Assets Corp. regarding Luckin Coffee?

The letter implies a call for unity among minority shareholders to prevent any return of the previous management that may jeopardize the company's progress.