Reborn Coffee Receives $1 Million Strategic Credit Facility to Accelerate Company Initiatives
26 Juli 2023 - 2:31PM
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 TysonExecutive
Vice PresidentMZ North AmericaREBN@mzgroup.us 949-491-8235
Company Contact:Reborn Coffee,
Inc.ir@reborncoffee.com
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