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Deepti Sri · · 1 min readLuckin Coffee bags $250m for the first time after accounting fraud scandal
“Centurium Capital’s affiliate firm will buy US$240 million in convertible preferred shares of Luckin Coffee, with Joy Capital doing the same to the tune of US$10 million,” KrAsia reported.
Details:
- Luckin will use the new funds to bankroll its proposed offshore restructuring plan and to pay the US$180 million settlement with the US Securities and Exchange Commission.
- Centurium Capital’s affiliate firm and Joy Capital, which both hold shares in Luckin, may also increase their stake on a pro rata basis for an additional US$150 million.
Context:
- The development comes as the tech-enabled coffee chain recovers from bankruptcy and its delisting after being hit by a US$180 million penalty for cooking financial statements.
- However, an internal investigation into allegations against Luckin chairman and CEO Jinyi Guo found no evidence to substantiate the alleged misconduct.
Editing by Miguel Cordon
(And yes, we’re serious about ethics and transparency. More information here.)
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