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

Reborn Coffee (NASDAQ: REBN) announced a $6.5 million equity investment priced at $5.45 per share for 1,192,661 shares, roughly three times the company’s current market price.

Rhea-AI Summary

Reborn Coffee (NASDAQ: REBN) announced a $6.5 million equity investment priced at $5.45 per share for 1,192,661 shares, roughly three times the company’s current market price.

As of Dec 31, 2025, the company estimates $3.4 million shareholders’ equity and says it has regained compliance with Nasdaq’s Stockholders’ Equity Requirement, pending a formal Nasdaq determination. The company also completed a warrant exchange that cancelled outstanding warrants and removed approximately $1.3 million in derivative liabilities.

Management cites strengthened balance sheet, reduced future dilution, improving operations, and an expectation to reach profitability in 2026.

Positive

• Raised $6.5M in premium-priced equity
• Estimated shareholders’ equity of $3.4M at Dec 31, 2025
• Cancelled warrants removing $1.3M in derivative liabilities
• Reduced future dilution via warrant exchange

Negative

• Equity deficiency existed before financing
• Compliance status still pending Nasdaq determination

Argus Jan 6 session

-0.56% close to close 22.7x rel. volume Open Argus

Details

News Market Reaction – REBN

On Jan 6, the day this news came out, REBN closed 0.56% below the previous close. That session’s volume was 22.7x the stock’s average daily volume.

Data tracked by StockTitan Argus for the Jan 6 session.

Key Figures

Equity investment: $6.5 million Issue price: $5.45 per share New shares: 1,192,661 shares +5 more

Equity investment

$6.5 million

Gross proceeds from premium-priced equity investment

Issue price

$5.45 per share

Price for 1,192,661 new common shares

New shares

1,192,661 shares

Common stock issued under Securities Subscription Agreement

Shareholders’ equity

$3.4 million

Estimated stockholders’ equity as of Dec 31, 2025

Derivative liabilities removed

$1.3 million

Warrant-related derivative liabilities eliminated via exchange and termination

Current share price

$1.80

Pre-news price vs premium financing at $5.45

52-week high

$8.30

Stock trading 78.31% below 52-week high pre-news

Market cap

$9,412,707

Equity value before impact of new investment

Historical Context

5 past events · Latest: Dec 09

5 events

1. Dec 09

   Shareholder update

   24h Move

   +12.9%

   Premium equity commitments and improved stockholders’ equity outlook.

2. Oct 23

   Advisory board

   24h Move

   +2.3%

   New advisory board formed to support strategy and global growth.

3. Sep 16

   New subsidiary

   24h Move

   +9.6%

   Launch of Reborn Logistics with contracts and revenue potential.

4. Aug 26

   Crypto ATM pilot

   24h Move

   -3.3%

   Digital asset ATM pilot at a flagship California store location.

5. Aug 21

   Crypto payments pilot

   24h Move

   -3.5%

   Planned crypto payment option through POS at select stores.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

Nasdaq Stockholders’ Equity Requirement, Securities Subscription Agreement, accredited investor, derivative liabilities, +1 more

5 terms

Nasdaq Stockholders’ Equity Requirement regulatory

"regained compliance with Nasdaq Stockholders’ Equity Requirement and Is Awaiting"

A Nasdaq stockholders’ equity requirement is a rule that a company listed on the Nasdaq exchange must maintain a minimum level of net worth — the difference between its assets and liabilities — to keep its listing. Think of it as a financial cushion: it shows the company has enough capital to absorb losses and continue operating. For investors, falling below this threshold can signal weak finances and may trigger warnings or removal from the exchange, which can harm liquidity and share value.

Securities Subscription Agreement regulatory

"The investment was made pursuant to a Securities Subscription Agreement with"

A securities subscription agreement is a signed contract in which an investor agrees to buy a specified number of shares or other securities from an issuer and the issuer agrees to sell them. It spells out the price, payment timing and the promises and conditions both sides must meet before the deal is completed. For investors it is important because it creates a legal commitment that affects how much ownership, voting power and future value the investor will have — like signing a purchase agreement when reserving a house.

accredited investor regulatory

"Subscription Agreement with an accredited investor for the purchase of 1,192,661"

An accredited investor is an individual or entity that meets certain financial criteria, such as having a high income or significant net worth, allowing them to invest in private or less regulated investment opportunities. This status matters because it grants access to investments that are often riskier or less available to the general public, reflecting a higher level of financial knowledge or resources.

View in glossary

derivative liabilities financial

"resulting in the cancellation of outstanding warrants and the elimination of approximately $1.3 million in derivative liabilities"

Derivative liabilities are obligations a company records when it owes money under financial contracts whose value depends on something else, like interest rates, stock prices, or currencies. Think of them as bets or insurance policies that can create future cash payments; they matter to investors because they can cause sudden changes in a company’s reported debt, profits and cash flow and reveal exposure to market risks that could affect valuation.

warrant exchange financial

"completed a warrant exchange and termination transaction with prior investors"

A warrant exchange is a corporate offer allowing holders of existing warrants (rights to buy company stock at a set price) to swap them for new securities—such as replacement warrants with different strike prices or expiration dates, or for shares or cash. For investors it changes the potential upside, timing and dilution risk—think of trading an old coupon for a new one with different value and expiry, which can preserve or reshape future gains.

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Company Believes It Has Regained Compliance with Nasdaq Stockholders’ Equity Requirement and Is Awaiting Formal Determination

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Reborn Coffee (REBN) announce on January 6, 2026 regarding financing?

Reborn Coffee announced a $6.5 million equity investment at $5.45 per share for 1,192,661 shares.

How does the $6.5M financing affect REBN's Nasdaq compliance?

The company estimates it regained compliance with Nasdaq's equity requirement with $3.4M shareholders’ equity as of Dec 31, 2025, pending formal Nasdaq determination.

What happened to Reborn Coffee's outstanding warrants in the announcement?

Reborn completed a warrant exchange and termination that cancelled outstanding warrants and eliminated about $1.3M in derivative liabilities.

Will the financing dilute existing REBN shareholders?

The company says the warrant cancellation reduces future dilution; the equity issuance increases shares outstanding but details on net dilution were not provided.

What guidance did Reborn Coffee give for 2026 after the financing?

Management expects the company to be profitable in 2026, citing improved operations and a stronger balance sheet.