The CEO and Chairman are having shares called in.
“Following the occurrence of a default by Haode Investment Inc. (the “Borrower”), a shareholder of Luckin Coffee Inc. (the “Company”) (NASDAQ: LK), under a US$ 518 million margin loan facility (the “Facility”), a syndicate of lenders, as secured parties under the Facility (the “Lenders”), has instructed Credit Suisse AG, Singapore Branch as security trustee, to exercise the Lenders’ rights with respect to the collateral securing the Borrower’s repayment obligations under the Facility. A total of 515,355,752 Class B ordinary shares and 95,445,000 Class A ordinary shares of the Company have been pledged to secure the Facility, including shares additionally pledged by an entity controlled by the family trust of Ms. Jenny Zhiya Qian, the Company’s CEO.”
Assuming Goldman sells these on the open market, the float will more than double.