LUCKIN COFFEE INC SP/ADR - LKNCY STOCK NEWS

Luckin Coffee Inc. (OTC: LKNCY) has successfully completed its debt restructuring process, with the effective date marked by the satisfaction of all conditions for the previously announced scheme. The restructuring involves US$460 million in convertible senior notes and comprises US$245.5 million in cash, US$109.9 million in new secured notes, and over 9 million ADSs. The unanimous approval from existing note holders and subsequent legal sanctions have paved the way for a financially stronger position for the company, enabling continued growth strategies and customer service improvements.

Luckin Coffee (OTC: LKNCY) announced that its scheme of arrangement became effective on December 17, 2021. This scheme relates to the restructuring of US$460 million in Convertible Senior Notes due 2025. The U.S. Bankruptcy Court granted the enforcement of the scheme on December 16, 2021, following unanimous creditor approval. The restructuring is expected to take effect on or about January 28, 2022. Luckin aims to complete the tender process for its Existing Notes by this date. CEO Dr. Jinyi Guo expressed gratitude for creditor support and emphasized a focus on sustainable growth.

Luckin Coffee announced that the Grand Court of the Cayman Islands has sanctioned its proposed scheme of arrangement involving $460 million Convertible Senior Notes due 2025. The scheme received unanimous support from creditors at the meeting on November 30, 2021. The sanction is pending the filing of the sealed Sanction Order and a final order from the U.S. Bankruptcy Court. A hearing for the Scheme Enforcement Order in the U.S. is scheduled for December 16, 2021. Luckin continues to operate under the supervision of its Joint Provisional Liquidators while restructuring its financial obligations.

Luckin Coffee Inc. (OTC: LKNCY) announced that shareholders approved all proposed resolutions during an extraordinary general meeting on December 11, 2021. The resolutions included amendments to the Fifth Amended and Restated Memorandum and Articles of Association, aimed at preventing share transfers to Restricted Persons and ensuring these individuals cannot vote on shares they own. Approximately 81.8% of shareholders voted in favor of the first nine resolutions, while 99.8% supported resolutions ten to twelve, reflecting strong shareholder backing for corporate governance.

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.

Luckin Coffee (OTC: LKNCY) reported a remarkable 105.6% increase in total net revenues for Q3 2021, amounting to RMB2,350.2 million (US$364.7 million), compared to RMB1,143.0 million for Q3 2020. Revenue growth was driven by higher average selling prices, increased monthly transacting customers (up 79.2% to 14.7 million), and an expanding store footprint, reaching 5,671 locations. Operating expenses rose by 46.8%, aligned with business expansion, but the company recorded a significant reduction in operating losses, from RMB462.5 million in Q3 2020 to RMB6.7 million in Q3 2021.

GS Wealth raises alarms regarding Luckin Coffee as concerns mount over Centurium Capital potentially gaining voting control of nearly 60% at the upcoming Extraordinary General Meeting (EGM) on December 11, 2021. The proposed amendments and a Poison Pill strategy may allow Centurium to handpick directors and influence company decisions, undermining minority shareholders' interests. GS Wealth urges shareholders to demand cancellation of the EGM and full transparency regarding Centurium’s takeover attempts.

Luckin Coffee (OTC: LKNCY) has successfully closed an investment agreement with Centurium Capital, raising approximately US$240 million through a private placement of 295,384,615 senior convertible preferred shares.

This funding will support Luckin's offshore restructuring, including settling a securities litigation, paying convertible senior notes, and covering other restructuring expenses. Additionally, Joy Capital is contributing around US$10 million as part of this investment. The capital will enable Luckin Coffee to expand its coffee business and achieve long-term growth targets.

Luckin Coffee (OTC: LKNCY) announced a unanimous approval from creditors for a scheme to restructure $460 million in convertible senior notes due 2025. The meeting, held on November 30, 2021, was attended by creditors representing approximately 97.7% of the notes, indicating strong support for the restructuring plan. The Cayman Court will review the scheme on December 13, 2021. CEO Dr. Jinyi Guo emphasized this approval as a significant step in the company's restructuring process, aimed at achieving sustainable growth and profitability.