Reborn Coffee Announces Conversion of $1.0 Million of Outstanding Debt into Common Equity
Dennis Egidi, Vice Chairman of the Board of Directors, Exchanges Convertible Note into Equity, Reinforcing Confidence in Company's Future Direction
BREA, Calif., Nov. 30, 2023 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (Nasdaq: REBN), a leader in the specialty coffee industry, today announced the conversion of $1.0 million of outstanding debt held by the Company’s Vice Chairman of the Board of Directors, Dennis Egidi, into common equity.
On June 26, 2023, the Company secured a $1.0 million credit facility with DRE, Inc. (“DRE”), owned and controlled by Dennis Egidi, to fund working capital requirements and operating expenses. Per the terms of the exchange agreement, DRE agreed to exchange, in consideration of surrender and termination of the Loan Note, with an outstanding balance (including interest accrued thereon) of $1,000,000, for 1,666,667 shares of common stock, par value $0.0001 per share, of the Company at a price per share equal to $0.60 per share. Pursuant to the Exchange Agreement, the Company also granted DRE piggyback registration rights with regard to the Exchange Shares.
“This exchange of debt for equity by our longstanding Director reflects a significant vote of confidence for what our team has been building at Reborn, and reduces our debt by $1.0 million,” said Jay Kim, Chief Executive Officer of Reborn. “With Dennis’s deep commitment and belief in our company’s potential and strategic direction, he believes this conversion will not only strengthen the company’s financial structure but also signal to investors and stakeholders the promising future that lies ahead for Reborn. The conversion rate of $0.60 per share also reflects a positive outlook for Reborn’s stock and operations. This rate is indicative of the company's current valuation and its potential for growth in the coffee market.”
About Reborn Coffee
Reborn Coffee, Inc. (NASDAQ: REBN) is focused on serving high quality, specialty-roasted coffee at retail locations, kiosks, and cafes. Reborn is an innovative company that strives for constant improvement in the coffee experience through exploration of new technology and premier service, guided by traditional brewing techniques. Reborn believes they differentiate themselves from other coffee roasters through innovative techniques, including sourcing, washing, roasting, and brewing their coffee beans with a balance of precision and craft. For more information, please visit .
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-Q for the first quarter of 2023, which can be found on the SEC’s website at . 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 impact of COVID-19 on consumer traffic and costs, 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.
Contacts
Investor Relations Contact:
Chris Tyson
Executive Vice President
MZ North America
949-491-8235
Company Contact:
Reborn Coffee, Inc.
