TH International, also known as Tims China, the exclusive operator of Tim Hortons coffee shops in China, has secured up to $65 million in financing from its founding shareholders, Cartesian Capital Group and Restaurant Brands International (RBI).

The funding includes $50 million in convertible notes, with $40 million issued at closing and the remaining amount to be funded over the next seven months, contingent on certain conditions.

The three-year notes are convertible into newly issued preferred shares of Tims China, which can then convert to ordinary shares at a price based on 110% of the volume-weighted average price.

In addition, RBI acquired the fast-food chain Popeyes business from Tims China for $15 million. Simultaneously, Tims China has resolved the deferred payment owed to former Popeyes China shareholders by issuing a $15 million convertible note.

Yongchen Lu, CEO 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.”

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