U.S. markets close in 1 hour 14 minutes

Luckin Coffee Inc. (LKNCY)

Other OTC - Other OTC Delayed Price. Currency in USD
Add to watchlist
8.30-0.05 (-0.60%)
As of 2:31PM EDT. Market open.
Full screen
Trade prices are not sourced from all markets
Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies
Chart Events
Neutralpattern detected
Previous Close8.35
Open8.43
BidN/A x N/A
AskN/A x N/A
Day's Range8.30 - 8.50
52 Week Range0.95 - 15.09
Volume502,431
Avg. Volume4,114,711
Market Cap2.101B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
Fair Value
XX.XX
Overvalued
Research that delivers an independent perspective, consistent methodology and actionable insight
Related Research
View more
  • GlobeNewswire

    Luckin Coffee Announces Appointment of Centurion ZD CPA & Co. as Independent Auditor

    BEIJING, April 15, 2021 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. (in Provisional Liquidation) (the “Company”) (OTC:LKNCY) today announced the appointment of Centurion ZD CPA & Co. (“CZD”), an independent accounting firm registered with the Public Company Accounting Oversight Board, as the Company’s auditor, effective April 15, 2021. The appointment has been approved by the Company’s Audit Committee and Board of Directors (the “Board”). CZD succeeds Marcum Bernstein & Pinchuk LLP (“MarcumBP”), the Company’s previous independent auditor. The Company and MarcumBP have no disagreements on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. While the Company has given full access of information to MarcumBP, to date, MarcumBP believes that it has not gathered sufficient independent third party data or conducted sufficient audit procedures to complete the audit in light of certain areas identified in the Company’s information technology general controls during the year ended December 31, 2019. To address the historical control issues, the Company has implemented remediation enhancements to its controls environment and will continue that process. While CZD will perform their own audit procedures, MarcumBP has been authorized by the Company’s Audit Committee and the Board to respond fully to inquiries from CZD and the Company is working closely with CZD to design additional audit procedures and gather additional third party information to complete the audit for the year ended December 31, 2019. The Company intends to work expeditiously with CZD to file its annual reports for the periods ended December 31, 2019 and December 31, 2020 as soon as possible. Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including Joint Provisional Liquidators. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the expense, timing and outcome of existing or future legal and governmental proceedings, investigations in connection with the Company; the outcome and effect of the ongoing restructuring of the Company’s financial obligations; the Company’s growth strategies; its future business development, results of operations and financial condition; the effect of the non-reliance identified in, and the resultant restatement of, certain of the Company’s previously issued financial results; the timing of the completion or outcome of the audit of the Company’s financial statements; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in China’s coffee industry or China’s food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China’s coffee industry or China’s food and beverage sector in general; PRC governmental policies and regulations relating to the Company’s industry; the potential effects of COVID-19; and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. About Luckin Coffee Luckin Coffee (OTC:LKNCY) has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, the Company pursues its mission to be part of everyone’s everyday life, starting with coffee. The Company was founded in 2017 and is based in China. For more information, please visit investor.luckincoffee.com. Investor and Media Contacts Investor Relations: Luckin Coffee IREmail: ir@luckincoffee.com Bill Zima / Fitzhugh TaylorICR, Inc.Phone: +1 646 880 9039 Media Relations: Luckin Coffee PREmail: pr@luckincoffee.com Ed Trissel / Jack KelleherJoele Frank, Wilkinson Brimmer KatcherPhone: 212 355 4449

  • GlobeNewswire

    Luckin Coffee Announces Investment Agreement

    Additional Financial Resources to Support the Company’s Recently Announced Offshore Debt Restructuring and Fulfill Settlement Obligations with U.S. Securities and Exchange Commission Preserves Company’s Financial Resources to Pursue Business Plan and Deliver Long-Term Growth and Value for Shareholders BEIJING, April 15, 2021 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. (in Provisional Liquidation) (the “Company” or “Luckin Coffee”) (OTC: LKNCY) today announced that it has entered into an investment agreement (the “Investment Agreement”) with an affiliate of Centurium Capital (“Centurium Capital”), as the lead investor, and Joy Capital. Both Centurium Capital and Joy Capital are leading private equity investment firms in China and current shareholders of the Company. Pursuant to the Investment Agreement, (i) Centurium Capital has agreed to an investment, through a private placement, totaling approximately US$240 million in senior convertible preferred shares of the Company (“Senior Preferred Share(s)”), and (ii) Joy Capital has agreed to an investment, through a private placement, totaling approximately US$10 million in Senior Preferred Shares (collectively, the “Transactions”). Under certain circumstances, Centurium Capital and Joy Capital may be able to upsize on a pro rata basis for an additional US$150 million. The closing of the Transactions will be subject to a series of closing conditions, including the implementation of a restructuring of Luckin Coffee’s $460 million 0.75% Convertible Senior Notes due 2025 through a scheme of arrangement under section 86 of the Cayman Islands Companies Act (2021 Revision) in accordance with the terms of the recently announced restructuring support agreement. A summary of key terms of the Transactions is attached as Exhibit 99.2 to the Current Report on Form 6-K furnished by the Company today. Luckin Coffee plans to use the proceeds of the investment to facilitate the Company’s proposed offshore restructuring and fulfill its obligations under its recently announced settlement with the U.S. Securities and Exchange Commission. The Transactions allow the Company to focus its balance sheet on the continued execution of its business plan, focused on growing the core coffee business and achieving its long-term growth targets. Negotiations between Luckin Coffee, Centurium Capital and Joy Capital were supported throughout by the Company’s financial advisor, Houlihan Lokey (China) Limited, legal advisors, Davis Polk & Wardwell LLP and Harney Westwood & Riegels, and the Joint Provisional Liquidators, Mr. Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Ms. Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited. Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. Luckin Coffee may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including Joint Provisional Liquidators. Any statements that are not historical facts, including statements about Luckin Coffee’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the expense, timing and outcome of existing or future legal and governmental proceedings, investigations in connection with Luckin Coffee; the outcome and effect of the ongoing restructuring of Luckin Coffee’s financial obligations; Luckin Coffee’s growth strategies; its future business development, results of operations and financial condition; the effect of the non-reliance identified in, and the resultant restatement of, certain of Luckin Coffee’s previously issued financial results; the timing of the completion or outcome of the audit of Luckin Coffee’s financial statements; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in China’s coffee industry or China’s food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China’s coffee industry or China’s food and beverage sector in general; PRC governmental policies and regulations relating to Luckin Coffee’s industry; the potential effects of COVID-19; and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in Luckin Coffee’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Luckin Coffee undertakes no obligation to update any forward-looking statement, except as required under applicable law. About Centurium Capital Centurium Capital is a leading private equity investment firm in China. With best-in-class domain knowledge and sector resources, Centurium Capital primarily focuses on investing into China's consumer, business services and healthcare sectors. About Joy Capital Joy Capital is a leading private equity firm in China with a focus on opportunities in TMT and innovative consumption sectors. Joy Capital identifies and partners with forward-looking enterprises that provide unique technologies and solutions to create real impact and value. About Luckin Coffee Luckin Coffee (OTC:LKNCY) has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, the Company pursues its mission to be part of everyone’s everyday life, starting with coffee. The Company was founded in 2017 and is based in China. For more information, please visit investor.luckincoffee.com. Investor and Media Contacts Investor Relations: Luckin Coffee IREmail: ir@luckincoffee.com Bill Zima / Fitzhugh TaylorICR, Inc.Phone: +1 646 880 9039 Media Relations: Luckin Coffee PREmail: pr@luckincoffee.com Ed Trissel / Jack KelleherJoele Frank, Wilkinson Brimmer KatcherPhone: 212 355 4449 Summary of Material Terms of the Transactions Purchase and Sale The Company will initially issue and sell to Centurium Capital a total of 295,384,615 Senior Preferred Shares and Joy Capital a total of 12,307,692 Senior Preferred Shares, at the issue price of US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis).ConversionAt the holder’s option, each Senior Preferred Share can be convertible into Class A Ordinary Shares of the Company (or an equivalent number of ADSs) at the then applicable conversion price.Price AdjustmentThe applicable initial conversion price shall be equal to US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis) and be subject to certain customary adjustments. In addition: During the period from signing until three years after the closing, if (i) there is an announcement or reporting by any Person of a U.S. Governmental Authority (other than the SEC) imposing a penalty or restriction, or entering into an agreement with any group company, in connection with the accounting irregularities disclosed in 2020 and (ii) the volume-weighted average trading price of the Companies’ American Depositary Shares during the 5 trading days after such announcement or reporting date is no more than 95% of the volume-weighted average price of the Companies’ American Depositary Shares during the 60 trading days ending on the date of such announcement or reporting, the then-applicable conversion price will be adjusted down to match a per Class A Ordinary Share price calculated based on the volume-weighted average trading price of the Companies’ American Depositary Shares during the 15-trading-day period beginning on the 5th trading day after the date of such announcement or reporting; provided that the cumulative downward adjustment resulting from this paragraph shall not exceed 25% of the initial conversion price; for the avoidance of doubt, if the per Class A Ordinary Share price implied by the volume-weighted average trading price of the Companies’ American Depositary Shares during the 15-trading-day period beginning on the 5th trading day after such announcement or reporting is higher than the then-applicable conversion price, no adjustment will occur hereunder.If after signing the Company issues equity securities for a consideration per Class A Ordinary Share that is less than the then-applicable conversion price, then (i) if the dilutive issuance is authorized or occurs, or the definitive agreements governing such dilutive issuance is entered into, on or prior to the closing, the then-applicable conversion price shall be reduced to such dilutive issue price; or (ii) if the dilutive issuance occurs after the closing, the conversion shall be adjusted downward based on a broad-based weighted formula. Upsize RightIf the Company has not received an approval from the State Administration of Foreign Exchange to repatriate any funds outside of China by a benchmark date, which is the later of November 15th, 2021 and the 60th day after the date on which the petition to convene a scheme meeting is filed in Cayman court, Centurium Capital and its permitted designated investors will have the right to purchase a pro rata entitlement to an additional 184,615,385 Senior Preferred Shares, at the issue price of US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis), by notifying the Company and Joy Capital of its decision to exercise such right within 40 days after such benchmark date. If Centurium Capital exercises such right, Joy Capital will have the right to purchase a pro rata entitlement to the additional 184,615,385 Senior Preferred Shares, at the issue price of US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis), by notifying the Company and Centurium Capital within 5 business days thereafter.Voting Rights Each Senior Preferred Share will be entitled to vote on all matters submitted to a vote of the holders of Class A Ordinary Shares on an as-converted basis, together with the holders of Class A Ordinary Shares, as one single class.Liquidation PreferenceIn the event of any distribution of assets, liquidation, dissolution or winding up, whether voluntary or involuntary, trade sale, or other liquidity event, distribution shall be made in the following manner: First, to the holders of Senior Preferred Shares then outstanding, an amount equal to the higher of (i) 100% of the original subscription price of the Senior Preferred Shares held by such holders, plus any declared but unpaid dividend on such Senior Preferred Shares and (ii) the amount of distribution such holders would have received if all such outstanding Senior Preferred Shares had been converted into Class A Ordinary Shares immediately prior to such distribution; andThen, to the holders of ordinary shares, pro rata. Reserved MattersThe prior written consent of the holders of a majority of the outstanding Senior Preferred Shares shall be required for the following actions in respect of any group company (except for any action to effect the Restructuring, as defined in the Investment Agreement):(a) any adverse change to the rights, preferences, privileges, powers, limitations or restrictions of holders of Senior Preferred Shares;(b) any creation, authorization or issuance of, or re-classification into, any class or series of the equity securities of the Company having any rights, preferences, privileges, powers, limitations or restrictions that are superior to or on a parity with the Senior Preferred Shares;(c) establish a record date for, declare, set aside for payment or pay any dividend on, or make any other distribution in respect of, any equity securities of any group company (whether in cash or in kind);(d) any repurchase, redemption or acquisition of, the equity securities of any group company;(e) any material amendment or modification to or waiver under any organizational documents of any group company;(f) any merger, scheme of arrangement, restructuring, change of control, sale of a majority of assets, or other extraordinary transactions, whether through one or a series of transactions;(g) any liquidation, winding up, dissolution, or cessation of business operation;(h) any sale, license, assignment, transfer, pledge or disposition of interest in any material group company or joint venture, or entry into, material amendment to, or termination of any VIE agreement; (i) any change to the size of the board of directors of any group company (except for any such change resulting from the resignation mechanism set forth under the recently announced restructuring support agreement);(j) incurrence or assumption of indebtedness in an amount in excess of US$50,000,000 in the aggregate during any twelve-month period;(k) settlement of any litigation or disputes involving an amount in excess of US$5,000,000 in the aggregate or with respect to any criminal matter; and(l) adoption of or material amendment to any equity incentive plan, subject to certain exceptions.Key Closing ConditionsThe closing of this transaction will be subject to a series of closing conditions, and among others, the following conditions: no other penalty disgorgement, obligation, liability, conviction, admission of guilt or wrongdoing, restriction, agreement or commitment has been made by or against, or is reasonably be expected to be imposed, against any group company or any of its current directors, officers, supervisors and employees by any U.S. governmental authority apart from the SEC penalty already agreed between the Company and the SEC and certain other exceptions;The CB scheme shall be effective or an alternative repayment or settlement plan is agreed between the Company and the joint provisional liquidators to Centurium Capital’s satisfaction and the U.S. Bankruptcy Court has made a Chapter 15 order;The group companies have not suffered any loss attributable to any willful wrongdoing or negligence by any employee, or the departure of (a) more than a specified proportion of employees in certain departments or (b) more than a specified proportion of employees with certain level of seniority or above, in any of the foregoing, that would be materially adverse to the group companies as a whole.other than as arising from the Company’s accounting irregularities publicly disclosed in 2020, there shall not have been any allegation, claim or other litigation with respect to the business of the group companies, operations, management, financial position or results of operations, concerning fraud, non-compliance, misconduct or other disreputable, discreditable, improper or scandalous conduct on the part of any group company or any of its current or former shareholder, director, officer, employee or supervisor that would be materially adverse to the group companies as a whole;the Company shall have provided Centurium Capital with the audited 2019 financial statements, which shall have been filed with the SEC as part of the Company’s annual report on Form 20-F for the year ended December 31, 2019;the Cayman court has not made a winding-up order in respect of the Company; andthe board of directors retain those powers reserved to them in the Cayman court order. Registration RightsThe holders of Senior Preferred Shares will be entitled to customary demand, shelf and piggyback registration rights.

  • GlobeNewswire

    Luckin Coffee Enters into Restructuring Support Agreement with Holders of a Majority of Existing Notes to Restructure Indebtedness and Enhance Capital Structure

    Noteholders are Expected to Receive Approximately 91-96% of the Par Value of the Existing Notes Luckin Coffee Maintains Strong Liquidity Position and Continues to Execute on Growth Strategy Company Actively Pursuing Several Options to Achieve Certainty of Funding BEIJING, March 16, 2021 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. (in Provisional Liquidation) (“Luckin Coffee” or the “Company”) (OTC: LKNCY) today announced that it has entered into a restructuring support agreement (the “RSA”) with holders of a majority of Luckin Coffee’s $460 million1 0.75% Convertible Senior Notes due 2025 (the “Existing Notes”). The holders of Existing Notes who are party to the RSA (the “Restricted Group”) collectively hold or control approximately 59% in aggregate principal amount of the Existing Notes. Now that the terms of the RSA are public, Luckin Coffee can and will seek support for the RSA from additional holders of the Existing Notes. Pursuant to the restructuring contemplated in the RSA (the “Restructuring”), which the Restricted Group has agreed to support and vote in favor of, Luckin Coffee expects to restructure the Existing Notes in a manner designed to allow the Company to comprehensively address its capital structure and better position it for long-term success. The Restructuring is expected to provide recovery to the holders of the Existing Notes in the amount of approximately 91-96% of par value.2 “We are pleased to reach this agreement with our noteholders, which represents an important milestone for Luckin Coffee,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee. “Today, we have a new leadership team and a viable plan to return Luckin Coffee to growth and value creation. The Board of Directors and management team believe that the Restructuring is in the best interests of the Company and its stakeholders. We will continue to take action to strengthen our capital structure while delivering outstanding products and services for our customers.” All Luckin Coffee stores remain open for business, continuing to offer high quality products, affordability and convenience to customers in the People’s Republic of China (the “PRC”). The transactions contemplated in the RSA are expected to strengthen Luckin Coffee’s financial stability and enhance its continuing ability to serve its customers. The Company continues to meet its trade obligations in the ordinary course of business, including paying suppliers, vendors and employees. Transactions Contemplated in the RSA As described in more detail and subject to the terms therein, the RSA contemplates, among other things, that the holders of the Existing Notes shall receive, on or after the effective date of the Restructuring, for each $1,000 principal amount and accrued and unpaid interest of the Existing Notes: Cash in an amount of $320, representing a recovery of 32% of par (the “Cash Consideration”);$230 principal amount of 9.00% One-Year Senior Secured Notes (the “New Notes A”), representing a recovery of 23% of par;3$300 principal amount of 9.00% Five-Year Senior Secured Notes (the “New Notes B”), representing a recovery of 30% of par;A number of American Depository Shares of Luckin Coffee (“ADSs”) valued at $60, representing 6% of par; andif Luckin Coffee is able to raise equity in the amount of $50 million or more prior to the effective date of the Restructuring, then each holder of Existing Notes will have the option (the “Equity Conversion Option”) to elect to replace up to $100 principal amount of New Notes A per $230 principal amount of New Notes A (such principal amount elected, the “Equity Conversion Amount”) with ADSs, or if ADSs are not available, New Notes B and/or cash, subject to a top-up mechanism that guarantees a recovery of 150% on the Equity Conversion Amount, representing an additional recovery of up to 5% of par.4 Luckin Coffee expects to implement the Restructuring through a scheme of arrangement in respect of the Existing Notes (the “Scheme”) pursuant to section 86 of the Companies Act (2021 Revision) (the “Companies Act”) of the Cayman Islands.5 The RSA provides that the Scheme must be approved in the Cayman Court and then enforced in the United States under chapter 15 of the U.S. Bankruptcy Code.6 RSA Timeline As further detailed in the RSA, the RSA will be effective and binding upon the Company and the Restricted Group until the earlier of: (i) the implementation of the Restructuring following its approval in the Cayman Court and enforcement in the U.S. Bankruptcy Court and (ii) December 31, 2021 (the “RSA Long-Stop Date”); provided that the Company and the JPLs may extend the RSA Long-Stop Date (i) for a period of up to 30 days, unless the Majority Ad Hoc Group (as defined in the RSA) objects to such extension and provides 5 business days’ prior written notice of such objection to the Company and the JPLs and (ii) until such later time as agreed in writing between the Company, the JPLs and the Majority Ad Hoc Group. Prior to the RSA Long-Stop Date, the Company is required to complete certain milestones to ensure the Restricted Group’s continued support for the Restructuring. These milestones include obtaining reasonable assurance of offshore7 funding in an amount equal to or greater than the Cash Consideration by June 14, 2021. In addition, the milestones require Luckin Coffee to file (i) a petition with the Cayman Court under section 86 of the Companies Act for an order approving the Scheme; and (ii) a summons with the Cayman Court for directions to convene the relevant meeting of creditors in respect of the Scheme, in each case no later than September 1, 2021. As required under the RSA, the Company shortly will commence the formal PRC regulatory approval process to transfer funds offshore through a planned capital reduction, in an amount sufficient to satisfy the Cash Consideration. The Company’s unaudited consolidated cash balance, excluding restricted cash and illiquid investments, amounts to approximately $775 million as of February 28, 2021.8 The capital reduction process is subject to approval from the relevant regulators in the PRC. Importantly, this remittance of PRC funds is not expected to have any impact on the Company’s ability to continue to meet its trade obligations in the ordinary course of business, including paying suppliers, vendors and employees. While there is no certainty that the above-described PRC regulatory approvals will be obtained, the Company is also pursuing alternative funding solutions from external investment sources. The Company is presently engaged in exclusive discussions for a period of 30 days9 with a credible investor, with a view to raise at least $250 million of equity funding through a private placement. This contemplated transaction is subject to ongoing negotiations and could be conditioned upon a number of factors, such as the market conditions and the filing of the Company’s 2019 annual report.10 Accordingly, there is no assurance with respect to the terms or the completion of this transaction. Instructions to Become Party to the RSA In connection with the Restructuring, Luckin Coffee is advised by Davis Polk & Wardwell LLP as legal counsel and Houlihan Lokey as financial advisor. Holders of Existing Notes may contact Houlihan Lokey at HL_Lake@HL.com with any questions regarding the RSA or the Restructuring. A copy of the RSA and instructions for holders of Existing Notes who would like to accede to the RSA are available on the Joint Provisional Liquidators’ website at https://dm.epiq11.com/case/luckin/documents. Please note that the summary of the Restructuring and the RSA in this announcement is for informational purposes only and is not a substitute for careful review of the RSA. Holders of the Existing Notes are urged to review the RSA and consult their own advisors as to the consequences of acceding to the RSA. Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. Luckin Coffee may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including Joint Provisional Liquidators. Any statements that are not historical facts, including statements about Luckin Coffee’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the expense, timing and outcome of existing or future legal and governmental proceedings, investigations in connection with Luckin Coffee; the outcome and effect of the ongoing restructuring of Luckin Coffee’s financial obligations; Luckin Coffee’s growth strategies; its future business development, results of operations and financial condition; the effect of the non-reliance identified in, and the resultant restatement of, certain of Luckin Coffee’s previously issued financial results; the timing of the completion or outcome of the audit of Luckin Coffee’s financial statements; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in China’s coffee industry or China’s food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China’s coffee industry or China’s food and beverage sector in general; PRC governmental policies and regulations relating to Luckin Coffee’s industry; the potential effects of COVID-19; and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in Luckin Coffee’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Luckin Coffee undertakes no obligation to update any forward-looking statement, except as required under applicable law. About Luckin Coffee Luckin Coffee (OTC: LKNCY) has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, Luckin Coffee pursues its mission to be part of everyone’s everyday life, starting with coffee. Luckin Coffee was founded in 2017 and is based in China. For more information, please visit investor.luckincoffee.com. Investor and Media Contacts Investor Relations:Luckin Coffee IREmail: ir@luckincoffee.com Bill Zima / Fitzhugh TaylorICR, Inc.Phone: 646 880 9039 Media Relations:Luckin Coffee PREmail: pr@luckincoffee.com Ed Trissel / Jack KelleherJoele Frank, Wilkinson Brimmer KatcherPhone: 212 355 4449 1 All amounts listed in dollars herein are in U.S. dollars. 2 As further detailed below and in the RSA, depending on the value of equity in Luckin Coffee during the period preceding the effective date of the Restructuring, total recovery to holders of Existing Notes could exceed 96% of par value. 3 In addition, holders of Existing Notes shall receive, on or after the effective date of the Restructuring, for each $1,000 principal amount and accrued and unpaid interest of the Existing Notes, $75 principal amount of Zero Coupon One Year Senior Secured Notes (the “New Notes C”); provided, however, that if the New Notes A are repaid in full, in cash on or prior to the maturity date of the New Notes A, then the entire issuance of New Notes C is automatically redeemed for $0.00 one business day after such repayment. 4 As further detailed in the RSA, depending on the value of equity in Luckin Coffee during the period preceding the effective date of the Restructuring, additional recovery due to exercise of the Equity Conversion Option may exceed 5%. 5 As previously reported, on July 15, 2020, the Grand Court of the Cayman Islands (the “Cayman Court”) appointed Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited to act as “light-touch” Joint Provisional Liquidators of the Company (the “Joint Provisional Liquidators”). Luckin Coffee continues to operate its business and implement the Restructuring under the day-to-day control of its Board of Directors, under the supervision of the Joint Provisional Liquidators. 6 As previously reported, on February 5, 2021, Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited, commenced a case under chapter 15 of title 11 of the United States Code (the “Chapter 15 Case”) with the United States Bankruptcy Court for the Southern District of New York (the “U.S. Bankruptcy Court”). The Chapter 15 Petition seeks, among other things, recognition in the United States of the Company’s provisional liquidation pending before the Cayman Court (Financial Services Division, Cause No. 157 of 2020 (ASCJ)) and related relief. 7 “Onshore” refers to financing, assets, etc. located in the PRC, whereas “offshore” refers to financing, assets, etc. located outside the PRC. 8 This amount assumes a USDRMB exchange rate of 1 USD = 6.4730 RMB. The great majority of the Company’s consolidated cash is located in the PRC. 9 This period is subject to certain conditions and may be extended by the Joint Provisional Liquidators. 10 Refer to section 6.1.1 of the Joint Provisional Liquidators’ Second Report to the Cayman Court dated January 29, 2021 for additional information.