TH International Limited, the operator of Tim Hortons in China, has secured up to US$65 million in financing and additional funding from its founding shareholders, Cartesian Capital Group, LLC, and Restaurant Brands International Inc.

The funding package includes US$50 million in convertible notes, with US$40 million issued at closing and the remaining to be provided over the next seven months, contingent on certain conditions, the company said in a release on Monday.

The three-year notes can be converted into newly issued preferred shares of Tims China, which will then convert to ordinary shares at a price based on 110 percent of the volume-weighted average price over the five trading days preceding the transaction’s closing.

Elsewhere, Restaurant Brands International, through one of its foreign entities, has acquired the Popeyes China business from Tims China for an enterprise value of US$15 million, on a cash-free, debt-free basis.

Simultaneously, Tims China has settled the deferred consideration owed to former shareholders of Popeyes China by issuing a US$15 million convertible note. This note converts directly into ordinary shares under similar financial terms as previously outlined.

Lu Yongchen, CEO of Tims China, said, “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.”