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BREA, CA, USA — Reborn Coffee, Inc. announced that it has received $6.5 million in gross proceeds from an equity investment priced at $5.45 per share, representing approximately three times the Company’s current market price and reflecting strong investor confidence in Reborn’s business model, strategic direction, and long-term growth prospects.
As a result of this financing and related balance sheet actions, the Company believes that, as of December 31, 2025, it has regained compliance with Nasdaq’s Stockholders’ Equity Requirement, with estimated shareholders’ equity of approximately $3.4 million.
The investment was made pursuant to a Securities Subscription Agreement with an accredited investor for the purchase of 1,192,661 shares of common stock at a purchase price of $5.45 per share, generating $6.5 million in gross proceeds.
In addition, on December 31, 2025, the Company completed a warrant exchange and termination transaction with prior investors, resulting in the cancellation of outstanding warrants and the elimination of approximately $1.3 million in derivative liabilities, materially strengthening the Company’s balance sheet and reducing future dilution.
“The receipt of $6.5 million in premium-priced equity capital at approximately three times our current market price, combined with the elimination of warrant-related derivative liabilities, significantly strengthens our balance sheet,” said Jay Kim, Founder and Chief Executive Officer of Reborn Coffee.
“We believe these actions address the previously identified equity deficiency and provide a solid financial foundation as we enter 2026. With improving operating performance, disciplined cost management, and a growing pipeline of domestic and international opportunities, we are excited about the year ahead and expect to be profitable in 2026. We believe Reborn is entering its next phase of growth from a position of increased financial stability and strong momentum.”
The Company is awaiting a formal compliance determination from Nasdaq and will provide an update upon receipt of such determination.
