BREA, CA, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Reborn Coffee, Inc. (NASDAQ:REBN) today released a comprehensive shareholder update following the premium-priced equity today 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.

About Reborn Coffee

Reborn Coffee, Inc. (NASDAQ:REBN) is a California-based specialty coffee retailer focused on delivering high-quality, handcrafted coffee experiences. With a growing global footprint and a dedication to innovation, Reborn is redefining the coffeehouse model through its premium products and technology-forward initiatives.

Forward-Looking Statements

All statements in this release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our recent filings with the Securities and Exchange Commission ("SEC") including our Form 10-K for the year ended December 31, 2024, which can be found on the SEC's website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the Company's ability to continue as a going concern as indicated in an explanatory paragraph in the Company's independent registered public accounting firm's audit report as a result of recurring net losses, among other things, the Company's ability to successfully open the additional locations described herein as planned or at all, the Company's ability to expand its business both within and outside of California (including as it relates to increasing sales and growing Average Unit Volumes at our existing stores), the degree of customer loyalty to our stores and products, the fluctuation of economic conditions, competition and inflation. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact:

Crescendo Communications, LLC

Tel: (212) 671-1020

Email: rebn@crescendo-ir.com

Reborn Coffee Receives $6.5 Million Equity Investment at $5.45 per Share—Approximately 3x Current Market Price; Strengthens Balance Sheet and Positions for Profitability in 2026