Mr. Yongchen Lu of Tims China reports

TIMS CHINA ANNOUNCES SIGNIFICANT FINANCING FROM FOUNDING SHAREHOLDERS

TH International Ltd., the exclusive operator of Restaurant Brands International Inc.'s Tim Hortons coffee shops in China, has secured an aggregate of up to $65-million of financing and additional financing from its founding shareholders Cartesian Capital Group LLC and Restaurant Brands.

The financing includes $50-million in convertible notes, of which $40-million was issued at closing, with the balance to be financed over the coming seven months, subject in each case to certain conditions. The three-year notes are convertible into newly issued convertible preferred shares of Tims China, which convert to ordinary shares at a price per share based on 110 per cent of the volume-weighted average price for the five trading days immediately prior to closing of the transaction.

In addition, through one of its foreign entities, Restaurant Brands has acquired the Popeyes China business from Tims China on a cash-free debt-free basis for an enterprise value of $15-million. Simultaneously, Tims China has extinguished the deferred consideration due to former shareholders of Popeyes China through the issuance of a $15-million convertible note, which converts directly into ordinary shares with financial terms similar to those outlined above.

Yongchen Lu, chief executive officer of Tims China, said: "We are pleased to announce this major funding package, which underscores the commitment of our founding shareholders to this dynamic business. This year will be a pivotal one for us, and fortifying our balance sheet is an important step forward towards ensuring our long-term success in this highly competitive market. This transaction enables us to drive growth in and intensify our focus on our core Tim Hortons brand."

More details of these transactions will be presented through a 6-K filing with the Securities and Exchange Commission, which will be available on the website of the SEC not later than July 1, 2024.

About TH International Ltd.

TH International is the parent company of the exclusive master franchisees of Tim Hortons coffee shops in mainland China, Hong Kong and Macau. Tims China was founded by Cartesian Capital Group and Tim Hortons Restaurants International, a subsidiary of Restaurant Brands.

The company's philosophy is rooted in world-class execution and data-driven decision making and centred around true local relevance, continuous innovation, genuine community and absolute convenience.

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