Home / SmartTech / The Luckin Coffee board displaces its chairman (the chairman also displaces the rest of the board) – TechCrunch

The Luckin Coffee board displaces its chairman (the chairman also displaces the rest of the board) – TechCrunch



Sometimes you just can’t get one [L]uckin ‘break.

After Luckin Coffee, a China-based coffee chain and delivery company, announced this morning that it was ending its struggle to be listed on the Nasdaq, a filing with the SEC announced that it was demanding the resignation of its chairman Lu Zhengyao .

In his SEC filing, it was also announced that the chairman requested the dismissal of independent director Sean Shao through a shareholder resolution that will be voted on at a general meeting on Sunday, July 5.

My God.

It̵

7;s getting ugly in Luckin, which has struggled to turn around after the $ 300 million accounting fraud revelation, in which the stock price has dropped in recent months. Shao led the board’s independent investigation into accounting irregularities.

Now, at a general meeting, the board of directors will be won. The company’s investors (yes, there are still investors!) Decide who they want to keep and who they want to fire up in a changing killing spree.

In addition to voting on several of the company’s current directors, shareholders will also vote on the appointment of two new independent directors, Zeng Ying and Yang Jie, who have longstanding business and legal backgrounds.

We had previously known about the extraordinary general meeting, but now the company has increased the stake by deciding to displace the chairman by July 2, three days before the planned general meeting.

To be honest, it is currently impossible to say what comes next. However, what I can say is that Luckin is currently trading 54% at the close on Friday and is barely worth a few hundred million dollars – less than its maximum market cap of over $ 12 billion. Whoever wins will have some really empty cups.


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