Opening Establishes a Foundation for Multi-Province Growth Across China and Reinforces Reborn Coffee’s Broader International Expansion Strategy BREA, Calif., March 24, 2026 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (Nasdaq: REBN) (the “Company”), a leader in the specialty coffee market, announced today the successful grand opening of its flagship location in Shenzhen, China on March 18, 2026. Located within Tencent’s new headquarters campus, the opening marks a significant milestone in Reborn Coffee’s internat ...

Core Insights - Reborn Coffee, Inc. has appointed Jung Jae Lim as Co-Chief Executive Officer, effective March 3, 2026, to enhance its logistics and operational capabilities [1][2] Group 1: Leadership Appointment - Jung Jae Lim brings over 20 years of experience in logistics and supply chain management, focusing on large-scale operations and multi-node distribution networks [2] - As Co-CEO, Mr. Lim will lead initiatives to optimize distribution capabilities, improve service reliability, and enhance cost efficiency [2][4] Group 2: Strategic Partnerships - Mr. Lim has secured partnerships with leading global companies in the USA and Mexico, with a combined monthly volume exceeding 1,550 units and an annual logistics revenue potential of approximately $20 million [3] - These contracts are seen as a significant milestone for Reborn Logistics, providing a strong foundation for growth and expansion of its customer base [3] Group 3: Company Vision - The leadership team emphasizes the importance of Mr. Lim's experience in pursuing a disciplined approach to scaling operations and creating long-term value [4] - Mr. Lim aims to build a high-performance logistics and supply chain strategy that enhances reliability and service excellence, aligning with the company's broader strategic priorities [4]

Core Insights - Reborn Coffee Inc. has entered into a distribution partnership with Sysco Corporation to enhance its supply chain capabilities and support its franchise expansion strategy across the United States [1][2][5] Group 1: Partnership Details - The partnership with Sysco is aimed at improving supply chain execution and standardizing distribution support for both existing and future franchise operators [2][3] - Reborn Coffee will leverage Sysco's distribution network and service capabilities to enhance fulfillment reliability and streamline purchasing processes [3][4] Group 2: Operational Improvements - The collaboration is expected to provide access to quality assurance resources, food safety protocols, and operational tools, which will help stores execute more consistently [3][4] - The structured framework for product delivery will allow franchise operators to focus more on customer experience and revenue-generating operations [4] Group 3: Company Background - Reborn Coffee is a California-based specialty coffee retailer focused on delivering high-quality, handcrafted coffee experiences and is redefining the coffeehouse model through innovation [7] - Sysco, as the global leader in food distribution, operates 340 distribution centers in over 10 countries and generated sales of more than $78 billion in fiscal year 2024 [5][6]

Core Insights - Reborn Logistics, a subsidiary of Reborn Coffee Inc., reported preliminary unaudited revenue of approximately $2.5 million and operating income of approximately $0.6 million for Q4 2025, with a target of $15 million in revenue and $1.5 million in operating income for 2026 [4][5]. Group 1: Business Update - Reborn Coffee Inc. provided a business update on Reborn Logistics, which was established to enhance supply chain infrastructure and support the company's growth in both domestic and international markets [2]. - The subsidiary is led by Mr. Lim Jae Jung, who has over 20 years of experience in the logistics industry, and has implemented a fundamental reset of its operating structure to improve efficiency and profitability [3]. Group 2: Financial Performance - For Q4 2025, Reborn Logistics achieved preliminary unaudited revenue of approximately $2.5 million and operating income of approximately $0.6 million, with expectations to reach $15 million in revenue and $1.5 million in operating income in 2026 based on current trends [4]. - The company anticipates increased shipment volume due to expanding operations and additional third-party customer activity [4]. Group 3: Strategic Focus - The formation of Reborn Logistics aims to strengthen the company's growth and improve operational efficiency, with a focus on disciplined execution and performance metrics [5][6]. - Reborn Logistics supports the broader objective of building an integrated supply chain and distribution ecosystem to enhance efficiency and reduce operational friction as the store count grows [7].

Core Insights - Reborn Coffee, Inc. has completed construction of its flagship location within Tencent's new headquarters in Shenzhen, China, with a grand opening planned after the Chinese New Year [1][3][4] - The new headquarters spans over 80 hectares and is designed to promote collaboration and innovation, positioning Reborn Coffee in a significant technology ecosystem [3][4] - Reborn Coffee's headquarters in Brea, California, is enhancing quality control initiatives to align with regional consumer preferences while maintaining global standards [6] Company Expansion - The flagship store is part of Tencent's campus, which accommodates over 23,000 employees and features approximately 500,000 square meters of office space [4] - Reborn Coffee aims to leverage this location for brand visibility and operational learning, contributing to its global growth strategy [8] - The company is focused on redefining the coffeehouse model through premium products and technology-driven initiatives [9]

Core Viewpoint - Reborn Coffee, Inc. has regained compliance with Nasdaq's minimum stockholders' equity requirement and will continue to be listed on the Nasdaq Capital Market [1][2]. Group 1: Compliance and Listing Status - The company received notice from Nasdaq confirming compliance with the minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b) [1]. - As a result of regaining compliance, the previously scheduled hearing before the Nasdaq Hearings Panel has been cancelled [2]. - The company's common stock will continue to be listed and traded on the Nasdaq Capital Market [2]. Group 2: Company Overview - Reborn Coffee, Inc. is a California-based specialty coffee retailer focused on delivering high-quality, handcrafted coffee experiences [3]. - The company is dedicated to innovation and is redefining the coffeehouse model through premium products and technology-forward initiatives [3].

Core Viewpoint - Reborn Coffee, Inc. has regained compliance with Nasdaq's Stockholders' Equity Requirement and is awaiting formal determination, following a successful equity investment that reflects strong investor confidence in the company's business model and growth prospects [1][2][4]. Financial Update - The company received $6.5 million in gross proceeds from an equity investment priced at $5.45 per share, which is approximately three times the current market price [1][2]. - As of December 31, 2025, the estimated shareholders' equity is approximately $3.4 million, indicating compliance with Nasdaq's requirements [2]. - A warrant exchange and termination transaction eliminated approximately $1.3 million in derivative liabilities, strengthening the balance sheet and reducing future dilution [3]. Management Commentary - The CEO, Jay Kim, stated that the recent capital infusion and elimination of derivative liabilities significantly enhance the company's financial stability, allowing for a solid foundation as it enters 2026 [4]. - The company anticipates improved operating performance, disciplined cost management, and a growing pipeline of opportunities, with expectations of profitability in 2026 [4]. Company Overview - Reborn Coffee, Inc. is a California-based specialty coffee retailer focused on high-quality, handcrafted coffee experiences, with a commitment to innovation and a growing global footprint [5].

Core Insights - Reborn Coffee, Inc. has secured a $6.5 million equity investment aimed at stabilizing its finances and achieving profitability by 2026 [1][4] - The company sold approximately 1.2 million common shares at $5.45 each, which is about three times its recent market value [1] - The capital raise, along with year-end balance sheet actions, has increased estimated stockholders' equity to around $3.4 million as of December 31, helping the company comply with Nasdaq's requirements [2] Financial Actions - Reborn Coffee completed a warrant exchange with previous investors, eliminating outstanding warrants and approximately $1.3 million in derivative liabilities, thereby strengthening its balance sheet [3] - The CEO emphasized that the equity capital received and the elimination of derivative liabilities significantly enhance the company's financial position [4] Future Outlook - The company is focused on improving operations, implementing cost controls, and expanding both domestic and international opportunities to achieve profitability next year [4] - Reborn Coffee plans to update investors once Nasdaq provides a formal compliance determination [5] - The stock has shown volatility, with a 52-week high of about $8.30 and a low of nearly $1.20, but shares rebounded over 50% from their lows [5]

Core Insights - Reborn Coffee, Inc. has released a shareholder update detailing its premium-priced equity financings and growth initiatives as it transitions into a technology-driven global coffee brand entering 2026 [1][2] Financial Foundation - The company secured $6.5 million in equity commitments at $5.45 per share, a significant premium to its market price, indicating strong investor confidence in its operating model and long-term value creation [2][3] - These financings enhance stockholders' equity, addressing previous deficiencies and providing working capital to support technology advancements and expansion efforts [3] Technology Transformation - Reborn is undergoing a major technology transformation, creating a unified, scalable platform that integrates POS systems, kiosks, mobile ordering, and store operations [4] - This integrated system allows for real-time visibility into sales and customer behavior, improving operational efficiency and decision-making [5][6] Operational Improvements - The U.S. retail stores are experiencing improved operational momentum due to technology integration, leading to better labor efficiency, service speed, and cost controls [7] - The company anticipates achieving sustainable positive cash flow starting in the first quarter of 2026, supported by these operational enhancements [7][14] Global Expansion Strategy - Reborn's long-term growth strategy focuses on an asset-light global licensing model, with approximately ten countries under licensing agreements and more in discussions [11] - The company is also expanding into distribution licensing for consumer products, broadening its global footprint and generating high-margin revenue streams [12] Flagship Developments - A significant milestone includes the development of a flagship location within Tencent's global headquarters in Shenzhen, showcasing Reborn's technology-forward retail model [13][18] - This location is expected to serve as a brand center and operational hub for international partners [10] Strategic Positioning for 2026 - With a strengthened capital structure, improved operational performance, and an expanding international licensing network, Reborn is positioned for a strong 2026 [14] - The company aims to leverage its integrated technology foundation to drive growth and achieve sustainable positive cash flow [15]

Core Insights - Reborn Coffee, Inc. has released a shareholder update detailing its premium-priced equity financings and growth initiatives as it prepares for 2026 [1][2] Financial Strengthening - The company secured $6.5 million in equity commitments at $5.45 per share, a significant premium to its market price, indicating strong investor confidence [2] - These financings enhance stockholders' equity and address previous deficiencies, providing a stronger foundation for the company as it navigates Nasdaq's hearing process [3] Technology Transformation - Reborn is undergoing a major technology transformation, moving beyond traditional coffee retailing to a fully integrated, omni-channel operating platform [4] - This platform offers real-time insights into sales, labor, and customer behavior, facilitating data-driven decision-making and improving operational efficiency [5][6] Operational Improvements - The U.S. retail stores are experiencing improved operational momentum, with gains in labor efficiency, service speed, and tighter cost controls, leading to more predictable performance [10] - The company anticipates achieving sustainable positive cash flow starting in the first quarter of 2026 [10] Global Expansion Strategy - Reborn's long-term growth strategy focuses on an asset-light global licensing model, with approximately ten countries currently under licensing agreements [11] - The company is also expanding into distribution licensing for Reborn-branded consumer products, creating high-margin revenue streams [12] Flagship Developments - A key milestone is the development of a flagship location within Tencent's global headquarters in Shenzhen, which will showcase Reborn's technology-driven retail model [14] - This location is expected to serve as a brand center and operational hub for supporting international partners [13] Strategic Positioning - With a strengthened capital structure, improving operational performance, and an expanding international licensing network, Reborn enters 2026 from a strong strategic position [15] - The company aims to leverage these initiatives to drive sustainable positive cash flow, marking a significant operational inflection point [15]