BREA, Calif., July 26, 2023 (GLOBE NEWSWIRE) -- Reborn Coffee, Inc. (NASDAQ: REBN) (“Reborn” or the “Company”), a California-based retailer of specialty coffee, today announced the Company has secured a new $1.0 million credit facility with DRE, Inc. (“DRE”) to fund working capital requirements and operating expenses.
Dennis R. Egidi, Vice Chairman of the Board of Directors for Reborn Coffee, manages DRE and DRE’s credit facility demonstrates confidence in Reborn’s ongoing growth anticipated from company-operated store sales and other products, with store revenues expected to occur from both location and product expansion. Mr. Egidi joined Reborn Coffee Inc. as a Director and the Vice Chairman of the Board of Directors in June of 2020. Mr. Egidi formed DRE, an Illinois real estate development company in 1993, developing over 30 affordable housing projects in Illinois, Ohio, Indiana, Iowa, and California, totaling approximately 5,000 units. Today, he continues to serve as President of DRE, and acts as Managing General Partner of 15 limited partnerships, of which 5 have been redeveloped over the past 5 years.
“This investment by DRE is a significant vote of confidence for what our team has been building at Reborn, said Jay Kim, Chief Executive Officer of Reborn. “It is particularly validating as Dennis has seen first-hand our accelerating growth and expansion strategy, new product innovation, and effective operational execution across our retail locations. We expect this capital infusion will extend our cash runway. We thank Dennis and DRE for their support as we continue to focus on sustained operational execution and year-over-year revenue growth.”
The new credit facility requires interest-only payments until maturity, bears variable interest at a rate equal to one percentage point in excess of that rate shown in the Wall Street Journal as the prime rate, never be less than 8% per year, and has a maturity date of May 31, 2025.
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-Q for the first quarter of 2023, 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 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
