Luckin Institution majority shareholder CRGI clears its stake in Luckin, previously 9.2%

On May 11th Luckin Coffee’s institutional shareholder, investment fund Managial Research Global Investor (CRGI), cleared all of Luckin’s shares, according to documents filed with the Securities and Exchange Commission on May 11. The documents show that Captial Research Global Investor has cleared its holdings of Luckin shares and currently accounts for 0% of the 775087728 outstanding shares issued by Luckin.

Original title: Luckin Institution majority shareholder CRGI cleared its stake in Luckin, which previously held 9.2%

Luckin Institution majority shareholder CRGI clears its stake in Luckin, previously 9.2%

Luckin Institution majority shareholder CRGI clears its stake in Luckin, previously 9.2%

According to documents disclosed on February 10 this year, Captial Research Global Investor stakeed 7152,960 shares of Luckin, or 9.2 per cent of Luckin Coffee’s total equity.

Luckin Institution majority shareholder CRGI clears its stake in Luckin, previously 9.2%

It is understood that Captial Research Global Investor has been increasing its stake in Luckin Coffee. As of May 31, 2019, it held only 46319552 class A common shares, according to the previous announcement.

Luckin Coffee is headquartered in Xiamen, Fujian Province and opened in January 2018. In November 2017, Qian Zhiya stepped down as a director and COO of Shenzhou Auto, leaving the company to start a business and setting up Luckin Coffee. The two-year-old Luckin Coffee, which has been in existence through “crazy” store openings and user subsidies, not only quickly gained a foothold in The Chinese coffee market, but also launched its fastest IPO in China in May 2019 on NASDAQ.

On April 2 this year, Luckin Coffee filed a filing with the Securities and Exchange Commission alleging that the company’s chief operating officer, Liu Jian, had made financial fraud involving about $2.2 billion in transactions, and that the company’s board of directors had set up a special committee to conduct an internal investigation. In addition, several U.S. law firms have filed a class-action lawsuit against Luckin Coffee for making false and misleading statements that violate U.S. securities laws.

Luckin Coffee’s shares plunged after the news broke. The stock has been suspended since April 7, after Nasdaq asked for more information from Luckin Coffee, and its final sale was $4.39, leaving it with a market value of $1.1 billion.

According to a source familiar with the matter, the U.S. SEC is investigating financial fraud by Luckin coffee employees, according to a source familiar with the matter. The CSRC has also publicly stated that luckin coffee has for the first time made a solemn position to the outside world since it was exposed for financial fraud and has communicated with the US SFC on cross-border regulatory cooperation. The CSRC also said the U.S. Securities and Futures Commission had responded positively.