Reborn Coffee Secures $6.5M Financing, Expects Positive Cash Flow in Q1 2026
Reborn Coffee released a comprehensive shareholder update following the premium-priced equity financings disclosed in its Form 8-K filed November 25. In October and November, Reborn secured $6.5M of equity commitments at $5.45 per share, representing a meaningful premium to the company's market price at the time of execution. This capital reflects strong confidence from accredited investors in Reborn's operating model, global strategy, and long-term value creation. Throughout 2026, Reborn said it will advance a major technology transformation that is redefining the company beyond its origins as a traditional coffee retailer. Reborn has built a fully integrated, omni-channel operating platform linking its POS systems, kiosks, mobile ordering, and store operations into a unified architecture. Reborn's U.S. retail stores are demonstrating improving operational momentum supported by the technology integration. The company has seen gains in labor efficiency, notable improvements in service speed and throughput, tighter cost controls, and stronger digital customer engagement. These improvements translate into more predictable store-level performance and support the company's expectation to achieve sustainable positive cash flow beginning in the first quarter of 2026. The company now has approximately ten countries under licensing agreements, with additional territories progressing through later-stage discussions. International partners are adopting Reborn's standardized store design, brand identity, and technology platform-creating a scalable framework for rapid global deployment. In addition to retail licensing, the company is expanding into distribution licensing. With a strengthened capital structure, improving operational performance, an integrated technology foundation, and a rapidly expanding international licensing network, Reborn enters 2026 from its strongest strategic position to date. The company expects these initiatives to drive sustainable positive cash flow beginning in the first quarter, marking a financial and operational inflection.
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- International Expansion Progress: Reborn Coffee has completed construction of its flagship store within Tencent's new headquarters campus, with a grand opening expected after the Chinese New Year, marking a significant step in the company's presence in the Chinese market.
- Brand Visibility Enhancement: As Reborn Coffee's exclusive master licensee in China, Reborn Health Goods (Shenzhen) led the development of this flagship location, which is anticipated to provide a meaningful platform for brand exposure and operational learning opportunities.
- Global Growth Strategy: Management believes that this flagship presence will be a crucial component of the company's global growth strategy, particularly in the dynamic technology and innovation hub of Shenzhen.
- Strong Market Performance: Since going public in 2022, Reborn Coffee's shares have risen by 12%, and the company currently operates 12 stores across the U.S. and Kuala Lumpur, demonstrating its competitiveness in the high-quality coffee retail market.
- Compliance Restored: Reborn Coffee has received notice from Nasdaq confirming it has regained compliance with the minimum stockholders' equity requirement, ensuring its stock continues to be listed and traded on the Nasdaq Capital Market, thus avoiding potential delisting risks.
- Hearing Canceled: The scheduled hearing before the Nasdaq Hearings Panel has been canceled as the company meets all applicable continued listing standards, further stabilizing investor confidence and reducing uncertainty.
- Market Positioning: As a specialty coffee retailer focused on high-quality handcrafted coffee, Reborn Coffee is redefining the coffeehouse model through innovation and global expansion, enhancing its position in a competitive market.
- Future Outlook: Despite facing ongoing net losses and expansion challenges, management remains optimistic about future business growth, emphasizing continued efforts to enhance customer loyalty and sales.
- Funding Stability: Reborn Coffee announced a $6.5 million equity investment, which is expected to aid in achieving profitability by 2026, while selling nearly 1.2 million common shares at $5.45 each, raising estimated stockholders' equity to about $3.4 million and restoring compliance with Nasdaq requirements.
- Financial Optimization: This capital raise, combined with year-end balance sheet adjustments, eliminated approximately $1.3 million in derivative liabilities, significantly strengthening the balance sheet and reducing future dilution risks, which management believes provides stability heading into the new year.
- Market Rebound: Reborn Coffee shares rose 6.67% to $1.92 in premarket trading, reflecting positive market sentiment towards the company's financial improvements, despite significant volatility over the past year with a 52-week high of $8.30 and a low of $1.20.
- Strategic Outlook: Founder and CEO Jay Kim stated that by improving operations, implementing tighter cost controls, and expanding both domestic and international opportunities, the company is confident in achieving profitability next year, further solidifying its market position.
- Strengthened Confidence: Reborn Coffee secured $6.5 million in equity financing at $5.45 per share in October and November, significantly above market price, reflecting strong investor confidence in the company's global strategy.
- Technology Transformation: The company is advancing a comprehensive technology transformation by integrating POS systems and mobile ordering, enhancing operational efficiency, which is expected to lay a solid foundation for future automation and strengthen market competitiveness.
- Improved Operational Performance: With technology integration, Reborn's U.S. retail stores have achieved gains in labor efficiency and service speed, with expectations to reach sustainable positive cash flow in Q1 2026, marking a significant financial and operational inflection point.
- Global Expansion Strategy: Reborn has established licensing agreements in approximately ten countries through an asset-light model, with plans to open a flagship store at Tencent's headquarters to showcase its technology-driven retail model and further expand its international market presence.
- Financing Boosts Confidence: Reborn Coffee secured $6.5 million in equity financing at $5.45 per share in October and November, significantly above market price, reflecting strong investor confidence in the company's global strategy and long-term value creation.
- Technology Transformation Upgrade: The company is advancing a comprehensive technology transformation by integrating POS systems, mobile ordering, and store operations, enhancing operational efficiency and enabling data-driven decision-making, thereby strengthening its competitive position in the market.
- Accelerating International Expansion: Reborn is leveraging an asset-light global licensing model, having signed agreements in approximately ten countries, which is expected to rapidly expand brand presence and generate high-margin, low-capital revenue streams.
- Sustainable Cash Flow Expectations: The company anticipates achieving sustainable positive cash flow in the first quarter of 2026, marking a significant financial and operational inflection point, driven by a strengthened capital structure and improved operational performance.

Formation of Advisory Board: Reborn Coffee Inc. has established a new advisory board to enhance innovation and growth, appointing Hisham Elkoustaf as its chair.
Expertise of Hisham Elkoustaf: Elkoustaf brings over 20 years of experience in corporate law, economic development, and foreign policy, having advised on legal and trade reforms in multiple countries.
Company's Commitment: The advisory board aims to guide Reborn Coffee in maintaining its commitment to sustainability and quality while expanding its global presence.
CEO's Enthusiasm: CEO Jay Kim expressed excitement about Elkoustaf's leadership and the potential impact of the advisory board on the company's future in the coffee industry.









