EXCLUSIVE: Reborn Coffee Raises Premium Equity Investment, Moves To Resolve Nasdaq Deficiency

Reborn Coffee, Inc. (NASDAQ:REBN) announced on Tuesday that it has received a $6.5 million equity investment.

The company said that it expects the move to help stabilize its finances and support its goal of reaching profitability in 2026.

Reborn Coffee sold nearly 1.2 million common shares at $5.45 per share, a level it described as roughly three times its recent market value.

Reborn said the capital raise, combined with year-end balance sheet actions, lifted estimated stockholders' equity to about $3.4 million as of Dec. 31. Management believes that figure restores compliance with Nasdaq's stockholders' equity requirement, though the company is still awaiting formal confirmation from the exchange.

Also Read: Reborn Coffee Expands Globally, Eyes Blockchain For Future-Proof Financial Management

Alongside the investment, Reborn completed a warrant exchange with prior investors, eliminating outstanding warrants and removing approximately $1.3 million in derivative liabilities—changes the company said strengthen the balance sheet and limit future dilution.

Founder and Chief Executive Officer Jay Kim said the transactions provide stability heading into the new year. He noted, "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. We believe these actions address the previously identified equity deficiency and provide a solid financial foundation as we enter 2026."

Kim added that improving operations, implementing tighter cost controls, and expanding the mix of domestic and international opportunities position the company to turn profitable next year.

Meanwhile, Reborn said it plans to update investors once Nasdaq issues a formal compliance determination.

REBN has a 52-week high of approximately $8.30 and a 52-week low of nearly $1.20, underscoring the stock's volatility over the past year. Shares fell sharply from earlier highs to their lows before rebounding more than 50% off the bottom.

REBN Price Action: Reborn Coffee shares were up 6.67% at $1.92 during premarket trading on Tuesday, according to Benzinga Pro data.

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