Reborn Coffee has received US$6.5 million in gross proceeds from an equity investment priced at US$5.45 per share, which the company says has seen it regain compliance with the Nasdaq Stockholders’ Equity Requirement prior to the turn of the new year.
The Californian specialty coffee retailer faced delisting from the Nasdaq in late 2025 due to its failure to meet the minimum requirements and required an additional minimum equity of US$2.5 million to regain compliance.
On 31 December 2025, Reborn Coffee also completed a warrant exchange and termination transaction with prior investors resulting in the cancellation of outstanding warrants and the elimination of approximately US$1.3 million in derivative liabilities.
Founder and CEO of Reborn Coffee, Jay Kim, says the stronger financial foundation heading into 2026 has the business well positioned to continue its growth.
“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,” says Kim.
“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.”
2025 saw Reborn sign agreements to rapidly increase its global presence, signing licensing deals with businesses in Thailand, South Korea, China, the Middle East, Europe, and MENA regions.
At the time of writing, the company is awaiting formal compliance determination from Nasdaq.
