Ruixing Coffee Latest News: Ruixing obtains financing of US $250 million from Dazheng Capital and Pleasure Capital

Luckin Coffee has some good news.

After the financial scandal, Capital chose to trust Luckin Coffee.

On the evening of April 15, Luckin Coffee received his first round of financing after the financial scandal, with two major shareholders coming from Daqing Capital and pleasure Capital.

On the evening of March 16, Luckin Coffee announced on his website that he was conducting exclusive negotiations with trusted investors on financing of at least 250 million US dollars. As soon as the news came out, everyone immediately attracted everyone's attention. At that time, Luckin Coffee said that the other party was an PE institution and there was more than one investor, but the investment was only a 30-day internal discussion, and there was no specific information about the detailed investment amount, that is to say. We won't know whether investors are really willing to pay for Luckin Coffee until 30 days later.

On the evening of April 15, Luckin Coffee announced the news of "exclusive negotiations with trusted investors" as scheduled.

Ruixing announced that it had signed an investment agreement with Dawei Capital and Joy Capital.

From this point of view, the so-called "trusted investors" are Dawei capital and pleasure capital.

According to the investment agreement, Dazhi Capital agreed to buy Luckin Coffee's advanced convertible preferred shares through private placement, of which Dazhuang Capital led the investment of US $240 million and pleasure Capital invested US $10 million. In addition, under certain conditions, Dazhuang Capital and pleasure Capital can invest an additional US $150 million proportionately.

However, the announcement also mentioned that the delivery of the deal depends on several delivery conditions, including the completion of a debt restructuring arrangement between Luckin Coffee and holders of convertible bonds of $460 million.

Anyone who knows Lucky knows that Dawei Capital and pleasure Capital have a deep binding relationship with Luckin Coffee. This time, the two major institutions took the initiative to save Luckin Coffee. According to an investor told the media: "I guess that on the one hand, Lu is out, on the other hand, the fundamentals of Lucky should be good, and it is normal for these institutions to re-participate, because they know more about Lucky." Shareholders contribute again, but also for the enterprise to survive, after all, at this time, survival is Luckin Coffee's first priority. "

Dawei Capital and pleasure Capital are the leading private equity firms in China. They have previously participated in round An and round B financing of Ruixing. Dawei Capital is also the earliest and largest external institutional investor of Lucky, with a total investment of nearly US $180 million. Liu Erhai, executive partner of pleasure Capital, began to invest in Shenzhou rental car in 2006, later invested in Shenzhou chauffeured car, and later Luckin Coffee. Now Dawei Capital and pleasure Capital are the existing shareholders of Luckin Coffee.

Before Luckin Coffee's scandal, Li Hui, chairman of Dawei Capital, and Liu Erhai, managing partner of pleasure Capital, worked closely with Lu Zhengyao in three projects, namely, car rental in China, chauffeured car in China and Luckin Coffee. Outsiders even called them an "iron triangle". Until Lucky's financial fraud and delisting crisis, the interests of Lu Zhengyao, Li Hui and Liu Erhai began to become inconsistent. Leading to the "iron triangle" turned against each other, at that time, the relevant media said: Lu Zhengyao wants to protect himself, while Li and Liu are more concerned about the survival of Lucky and the interests of investment institutions, and then Luckin Coffee's board of directors is mired in an infighting war.

Luckin Coffee said on the acquisition of a new round of financing that the conclusion of a new round of financing agreement will help to further optimize the company's financial structure to promote the development of core business and achieve long-term growth goals. Ruixing will use this investment to make a good overseas debt restructuring plan and fulfill its obligations under the settlement agreement with the Securities and Exchange Commission (SEC).

In addition, Luckin Coffee also stressed on the official Weibo that the company will further optimize its operational services, adhere to product and technological innovation, and provide consumers with high-quality, cost-effective and convenient coffee.

In addition, Luckin Coffee also changed his independent auditor while getting the investment.

Luckin Coffee has appointed Zhongzhengda Accounting firm to replace Mak Kai Boping as its independent auditor.

Mackay Bopping was appointed by Ruixing as an independent auditor in September 2020, and Ruixing said that McKay Bopping believes that because of the general control of information technology in 2019, it did not collect enough independent third-party data or implement sufficient audit procedures to complete the audit.

There is no difference between the company and Macpherson on accounting principles or practices, disclosure of financial statements, audit scope or procedures, and plans to cooperate with Zhengda to submit annual reports for 2019 and 2020 as soon as possible.

Last,

From the initial establishment of Ruixing to its listing, financing can be wave after wave, it can be said that it is inseparable from the promotion of capital. Now Luckin Coffee, who is "ripe" by capital, has returned to the line of sight of capital. In other words, it also shows that the capital chooses to believe in Lucky again. Lucky to rebuild the great cause may be hopeful!

* Image source: Internet