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Reborn Coffee Announces Completion of Private Placement of Convertible Note

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Reborn Coffee Inc. (Nasdaq: REBN) has announced a $500,000 investment through a convertible note issued to Quen Inno Tech Co., The note is convertible into Reborn Coffee's common stock at $3.36 per share. Key features include:

  • 0% annual interest rate, increasing to 10% upon default
  • Reflects strong confidence in Reborn's growth prospects
  • Strengthens capital structure for expansion

CEO Jay Kim stated that this investment supports Reborn's domestic and international expansion efforts. The favorable conversion rate indicates a positive outlook for the company's future.

Reborn Coffee Inc. (Nasdaq: REBN) ha annunciato un investimento di $500.000 tramite una nota convertibile emessa a Quen Inno Tech Co. La nota può essere convertita in azioni ordinarie di Reborn Coffee a $3,36 per azione. Le caratteristiche principali includono:

  • tasso d'interesse annuale dello 0%, che aumenta al 10% in caso di inadempienza
  • riflette una forte fiducia nelle prospettive di crescita di Reborn
  • rafforza la struttura del capitale per l'espansione

Il CEO Jay Kim ha dichiarato che questo investimento sostiene gli sforzi di espansione nazionale e internazionale di Reborn. Il tasso di conversione favorevole indica una prospettiva positiva per il futuro dell'azienda.

Reborn Coffee Inc. (Nasdaq: REBN) ha anunciado una inversión de $500,000 a través de un pagaré convertible emitido a Quen Inno Tech Co. El pagaré es convertible en acciones ordinarias de Reborn Coffee a $3.36 por acción. Las características clave incluyen:

  • tasa de interés anual del 0%, que aumenta al 10% en caso de incumplimiento
  • refleja una fuerte confianza en las perspectivas de crecimiento de Reborn
  • fortalece la estructura de capital para la expansión

El CEO Jay Kim declaró que esta inversión apoya los esfuerzos de expansión nacional e internacional de Reborn. La tasa de conversión favorable indica una perspectiva positiva para el futuro de la empresa.

리본 커피 주식회사 (Nasdaq: REBN)는 퀸 이노 테크(Quen Inno Tech Co.)에 발행된 전환 가능 어음으로 50만 달러의 투자를 발표했습니다. 이 어음은 리본 커피의 보통주로 주당 3.36달러에 전환될 수 있습니다. 주요 특징은 다음과 같습니다:

  • 연 0%의 이자율, 채무불이행 시 10%로 증가
  • 리본의 성장 가능성에 대한 강한 확신을 반영
  • 확장을 위한 자본 구조 강화

CEO 제이 킴(Jay Kim)은 이번 투자가 리본의 국내외 확장 노력을 지원한다고 밝혔습니다. 유리한 전환율은 회사의 미래에 대한 긍정적인 전망을 나타냅니다.

Reborn Coffee Inc. (Nasdaq: REBN) a annoncé un investissement de 500 000 $ à travers une note convertible émise à Quen Inno Tech Co. La note peut être convertie en actions ordinaires de Reborn Coffee à 3,36 $ par action. Les caractéristiques clés comprennent :

  • taux d'intérêt annuel de 0 %, augmentant à 10 % en cas de défaut
  • reflète une forte confiance dans les perspectives de croissance de Reborn
  • renforce la structure de capital pour l'expansion

Le PDG Jay Kim a déclaré que cet investissement soutenait les efforts d'expansion nationale et internationale de Reborn. Le taux de conversion favorable indique une perspective positive pour l'avenir de l'entreprise.

Reborn Coffee Inc. (Nasdaq: REBN) hat eine Investition von 500.000 $ durch eine an Quen Inno Tech Co. ausgegebene wandelbare Anleihe angekündigt. Die Anleihe kann zu einem Preis von 3,36 $ pro Aktie in Stammaktien von Reborn Coffee umgewandelt werden. Zu den wichtigsten Merkmalen gehören:

  • 0% jährlicher Zinssatz, der im Falle eines Ausfalls auf 10% ansteigt
  • Spiegelt das starke Vertrauen in die Wachstumsperspektiven von Reborn wider
  • Stärkt die Kapitalstruktur für eine Expansion

CEO Jay Kim erklärte, dass diese Investition die nationalen und internationalen Expansionsbemühungen von Reborn unterstützt. Der günstige Umwandlungspreis deutet auf einen positiven Ausblick für die Zukunft des Unternehmens hin.

Positive
  • Secured $500,000 investment through convertible note
  • Convertible note priced at $3.36 per share, indicating favorable outlook
  • Strengthened capital structure for expansion efforts
  • 0% initial interest rate on the convertible note
Negative
  • 10% interest rate applies in case of default event
  • Potential dilution of existing shareholders upon conversion

Insights

The $500,000 convertible note investment from Quen Inno Tech Co., is a positive development for Reborn Coffee. The $3.36 per share conversion price, significantly above the current market price, signals investor confidence in REBN's future growth. However, the 0% interest rate is unusual and could be a double-edged sword. While it reduces immediate financial burden, it might indicate less favorable terms elsewhere in the agreement. The potential 10% interest rate upon default is a standard protective measure. This investment provides additional working capital for expansion without immediate dilution, but investors should monitor how effectively REBN utilizes these funds for growth.

This private placement reflects growing interest in the specialty coffee market, which is projected to reach $83.6 billion globally by 2025. Reborn Coffee's ability to secure this investment amid a challenging economic environment speaks to its perceived market potential. The convertible note structure allows REBN flexibility in its capital management while providing the investor with potential upside. However, the lack of details on specific expansion plans or use of funds leaves questions about the company's immediate growth strategy. Investors should watch for concrete steps in REBN's expansion efforts, particularly in international markets, to gauge the potential return on this investment.

Strategic Investment Reflects Strong Confidence in Reborn Coffee’s Growth Prospects and Expands Capital Structure

BREA, Calif., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (Nasdaq: REBN) (“Reborn Coffee” or the “Company”), _a leading player in the specialty coffee industry, today announced an investment of $500,000 through a convertible note issued to Quen Inno Tech Co., Ltd. The convertible note is convertible into shares of Reborn Coffee’s common stock at a price equal to $3.36 per share. The convertible note accrues interest at an annual rate of 0%; however, the interest rate will increase to an annual rate of 10% upon the occurrence of an event of default.

This strategic investment highlights the growing confidence in Reborn Coffee's business model and future growth prospects. The investment by Quen Inno Tech Co., Ltd. is a strong vote of confidence for the company's vision and operational strength.

Jay Kim, Chief Executive Officer of Reborn Coffee, commented, "This investment further strengthens our capital structure and supports our ongoing expansion efforts both domestically and internationally. The conversion rate of $3.36 per share reflects a favorable outlook for Reborn Coffee and the promising trajectory of our business."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

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 www.reborncoffee.com.

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, our Form 10-Q for the first quarter of 2024, and our Form 10-Q for the second quarter of 2024, which all 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 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
REBN@mzgroup.us  
949-491-8235

Company Contact:
Reborn Coffee, Inc.
ir@reborncoffee.com


FAQ

What is the amount of investment Reborn Coffee (REBN) received in August 2024?

Reborn Coffee (REBN) received a $500,000 investment through a convertible note issued to Quen Inno Tech Co., in August 2024.

What is the conversion price of the note for Reborn Coffee (REBN) stock?

The convertible note for Reborn Coffee (REBN) is convertible into common stock at a price of $3.36 per share.

What is the interest rate on Reborn Coffee's (REBN) convertible note?

The convertible note for Reborn Coffee (REBN) has an initial 0% annual interest rate, which increases to 10% upon the occurrence of an event of default.

How does Reborn Coffee (REBN) plan to use the investment received in August 2024?

Reborn Coffee (REBN) plans to use the investment to support its ongoing expansion efforts both domestically and internationally.

Reborn Coffee, Inc.

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