Luckin Coffee Inc Stock Price, News & Analysis

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.

Luckin Coffee (OTC: LKNCY) announced an Extraordinary General Meeting (EGM) on December 11, 2021, to discuss key resolutions aimed at safeguarding the company and its shareholders. The Board recommends voting in favor of amendments to prevent restricted individuals from transferring company shares or exercising voting rights. This initiative follows prior issues related to fabricated transactions and aims to enhance long-term shareholder value. Shareholders eligible to vote include those on record as of November 8, 2021. The Board emphasizes its commitment to fulfilling fiduciary duties and promoting company stability.

Luckin Coffee (LKNCY) reported a remarkable 106% increase in net revenues for the first half of 2021, totaling RMB3.18 billion (US$492.9 million), largely driven by increased selling prices and a rise in items sold.

Partnership store revenues surged by 357.8%, demonstrating significant growth. Despite operating at a loss of RMB411.5 million (US$63.7 million), the company improved its store-level profit margin to 16.3%. Furthermore, net loss decreased sharply by 86.4% compared to the prior year, reflecting improved business operations and cash flow, with net cash generated from operations totaling RMB129.6 million (US$20.1 million).