Driving China on April 16, 2021 news on April 15, lucky coffee announced that it had reached a new financing agreement with Dazheng capital and pleasure capital, the existing shareholders of the company. Dazheng capital led the investment in this round of financing.
According to the investment agreement, Dazheng capital agreed to subscribe for the total amount of US $240 million of senior convertible preferred shares of lucky coffee through the company’s private placement; pleasure capital agreed to subscribe for the total amount of US $10 million of senior convertible preferred shares through the company’s private placement. Under certain circumstances, Dazheng capital and joyful capital can make an additional investment of US $150 million on a year-on-year basis.
However, the announcement also mentioned that the delivery of the transaction depends on a number of delivery conditions, including the completion of debt restructuring arrangements between lucky coffee and holders of convertible bonds with us $460 million.
Lucky coffee said that the new round of financing agreement is conducive to further optimizing the company’s financial structure, so as to promote the development of the company’s core business and achieve long-term growth goals.
This is also the first round of financing for lucky coffee after it was deeply involved in the financial fraud crisis. Earlier, lucky coffee announced that it had reached a settlement with the securities and Exchange Commission on the financial fraud of some of its former executives and employees, and the settlement plan was approved by the Southern District Court of New York on February 4, 2021.