Luckin Coffee Inc (LKNCY)

[CycleTrade]

With the $250M Raise @$6.50 per Share, they just added 38.5M shares to the float with the potential of another $150M Raise @$6.50 for the addition of another 23M shares. If they go through with both raises, that will give them plenty of cash but will add 61M shares or add 25% more shares to the float and dilute existing shareholders by 25%. So, what was $10 would be worth $7.50 and thus...the issue price at a discount of $6.50 per share.