Following the fraud incident of Luckin Coffee, Luckin Coffee announced the completion of the financing milestone and the follow-up development was bright.

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According to the APP of Zhitong Finance, Luckin Coffee (OTC: LKNCY) (LKNCY. US) announced the completion of the financing milestone under the restructuring support Agreement (RSA) signed with holders of the company's $460 million convertible senior bonds maturing in 2025.

Under the restructuring support Agreement, Luckin Coffee needs to complete the formal Chinese regulatory approval process by June 14, 2021, transferring funds overseas through planned capital cuts, an amount sufficient to meet the cash consideration.

Luckin Coffee has now completed the approval process for Chinese regulators, including obtaining approval from the State Administration of Foreign Exchange (SAFE) through a designated Chinese foreign exchange agency bank to transfer the required funds outside China through planned capital cuts. Meet the financing milestones stipulated in the restructuring support Agreement. Under the agreement, bondholders hold or control about 94 per cent of the total principal of existing bonds.

According to Ruixing's development on Baidu encyclopedia:

In October 2017, the first Luckin Coffee opened for business.

Luckin Coffee (China) Co., Ltd. was established on March 28th, 2018.

Luckin Coffee announced the completion of round A financing on July 11, 2018, with a post-investment valuation of $1 billion.

On December 12, 2018, Luckin Coffee announced the completion of round B financing of US $200m, with a valuation of US $2.2 billion.

On April 22, 2019, Luckin Coffee submitted an offering document to the Securities and Exchange Commission (SEC), intending to raise up to 100 million US dollars and seeking to be listed on the NASDAQ Stock Exchange under the symbol LK.

On May 16, 2019, the issue price of IPO was determined and listed on May 17.

Luckin Coffee was also proud of his countrymen until the most surprising event of Luckin Coffee's counterfeiting in 2020. On April 2, 2020, Luckin Coffee issued an announcement admitting to false trading of 2.2 billion yuan, the share price plummeted 80%, and trading was suspended several times in intraday trading.

Luckin Coffee luckincoffee issued an apology on his official Weibo for financial fraud on April 5.

Luckin Coffee was charged with fraud by the Securities and Exchange Commission (SEC) in December 2020 and agreed to pay $180 million to reach a settlement.

In February 2021, Luckin Coffee filed for bankruptcy protection in the United States.

After a series of measures such as changing the management team and speeding up the innovation of products, Luckin Coffee has achieved a basically stable situation. Luckin Coffee is still able to achieve normal business, which is related to the rise of China's domestic coffee consumption market. According to the June 11 report of Dianbao Dian, Capital is optimistic about the coffee industry. According to the 2020-2021 China Industry Development Research report of Dianbao Dian, at least 10 brands have won the favor of capital in 2020, including Yongpu Coffee, three and a half meals, Eagle set Coffee and so on.

In this year, the financing of coffee brands also occurred frequently. On January 15 this year, M Stand completed round A financing of 100 million yuan; on June 11, boutique coffee brand Yongpu Coffee completed more than 50 million yuan of A + round financing, with investors of Zhongyuan Capital and Maixing Capital; and on June 16, coffee chain Manner Coffee completed hundreds of millions of dollars of B + round financing, investors for byte beating.

Luckin Coffee also won the favor of capital again and completed the "financing milestone". Zhu Danpeng, an analyst of China's food industry, analyzed that Luckin Coffee would not have too many litigation disputes in the short term, otherwise the capital would not want to enter. And the reason for continuing to invest in Luckin Coffee also proves that capital is optimistic about Luckin Coffee's development.

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