Notable News to Watch: Luckin Coffee Inc. (NASDAQ:LK)

Luckin Coffee Inc. (NASDAQ:LK) spotted trading -7.24% off 52-week high price. On the other end, the stock has been noted 229.18% away from the low price over the last 52-weeks. The stock changed -1.46% to recent value of $45.13. The stock transacted 10607252 shares during most recent day however it has an average volume of 9.03M shares. The company has 246.15M of outstanding shares and 38.61M shares were floated in the market.

On Jan. 15, 2020, Luckin Coffee Inc. (NASDAQ:LK) a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers,  declared the completion of the public offering of 9.00 million American depositary shares (the ADSs), each representing eight Class A ordinary shares of the Company (the Primary ADS Offering), and 4.8 million ADSs offered by the selling shareholder (the Secondary ADS Offering, together with the Primary ADS Offering, the ADS Offering), at US$42.00 per ADS. Luckin Coffee will not receive any proceeds from the sale of ADSs by the selling shareholder. The Company and the selling shareholder have granted the underwriters of the ADS Offering a 30-day option to purchase up to an additional 2.07 million ADSs. The Company also closed the previously announced concurrent offering of convertible senior notes (Notes) of the Company.

The Company received net proceeds of approximately US$363.6 million from the Primary ADS Offering, and net proceeds of approximately US$388.4 million from the concurrent note offering. We expect to receive approximately an additional US$54.7 million from the Primary ADS Offering if the underwriters exercise their option to purchase additional ADSs from us in full, and approximately an additional US$58.3 million if the initial purchasers in the concurrent note offering exercise in full their option to purchase additional Notes.

Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, China International Capital Corporation Hong Kong Securities Limited and Haitong International Securities Company Limited are acting as the joint book-running managers for the ADS Offering. KeyBanc Capital Markets Inc. and Needham & Company, LLC are acting as co-managers.

This offering is being made only by means of a written prospectus forming a part of an effective registration statement. Copies of the preliminary prospectus related to the proposed ADS Offering may be obtained from: (1) Credit Suisse Securities (USA) LLC, 11 Madison Avenue, New York, NY 10010-3629, United States of America, Attention: Prospectus Department, (2) Morgan Stanley & Co. LLC, Prospectus Department, 2nd Floor, 180 Varick Street, New York, NY 10014, United States of America, Attention: Prospectus Department, (3) China International Capital Corporation Hong Kong Securities Limited, 29th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong and (4) Haitong International Securities Company Limited, 8/F, Li Po Chun Chambers, 189 Des Voeux Road Central, Hong Kong, Attention: Equity Capital Markets.

LK has a gross margin of 6.50% and an operating margin of -72.20%.

According to the most recent quarter its current ratio was 4.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 21.93% from the mean of 20 days, 47.42% from mean of 50 days SMA and performed 93.74% from mean of 200 days price. Company’s performance for the week was 14.37%, 46.48% for month and YTD performance remained 14.66%.

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