China’s Luckin Coffee Inc. said it has signed an investment agreement with an affiliate of Centurium Capital and Joy Capital totaling $250 million.
Both Centurium Capital and Joy Capital are private-equity firms in China and shareholders of Beijing-headquartered Luckin.
Centurium Capital is leading the deal through a private placement of about $240 million in senior convertible preferred shares of the company. Joy Capital has agreed to an investment, also through a private placement, totaling about $10 million in senior preferred shares.
Luckin said it plans to use the investment proceeds to facilitate its proposed offshore restructuring and fulfill its obligations with the U.S. Securities and Exchange Commission.
Last year Luckin admitted that it had intentionally faked more than $300 million in sales. That revelation would lead to the firing of its chairman and chief executive, the delisting of its stock by Nasdaq, and hundreds of millions in fines imposed by Chinese and U.S. regulators.
Luckin filed for Chapter 15 bankruptcy in New York in February.
