Reborn Coffee, Inc. (NASDAQ: REBN) completed a $6.5 million equity financing on October–November 2025, issuing 1.19 million shares at $5.45 each, a premium to the market price at the time. The capital infusion was announced on December 9, 2025, and is intended to lift the company’s stockholders’ equity above the Nasdaq minimum of $2.5 million and stave off a December 11 delisting.
The financing directly addresses the Nasdaq equity‑deficiency warning that had been issued earlier in the year. Prior to the raise, REBN’s equity had fallen to $1.8 million, below the exchange’s threshold, and the company faced a compliance deadline of November 25 with a potential extension to December 11. By raising $6.5 million, the company now reports equity of $4.3 million, comfortably above the required level.
Management said the proceeds will be deployed across three strategic priorities. First, the company will accelerate its omni‑channel technology platform, which integrates point‑of‑sale, kiosk, and mobile ordering systems, with the goal of improving operational efficiency and data‑driven decision making. Second, the firm will invest in supply‑chain automation to reduce labor costs and improve inventory turnover. Third, the capital will support the expansion of its licensing pipeline, which already spans ten countries, by targeting new markets in Southeast Asia and Latin America.
While the financing is a lifeline, the fact sheet highlights that REBN remains in a precarious financial position. Net losses of $12.3 million were reported for the most recent quarter, and operating margins have slipped to 3.2 % from 4.5 % a year earlier, largely due to higher cost of goods sold and the need to fund technology upgrades. The Altman Z‑Score of –13.04 signals severe distress, and the company has not yet achieved positive cash flow.
CEO Jay Kim emphasized that the premium pricing of the shares reflects investor confidence in the turnaround plan. “The $5.45 price represents a clear vote of confidence in our vision,” Kim said. “The capital raised will strengthen our balance sheet, address the equity deficiency, and allow us to accelerate technology deployment and global expansion.” The company has set a target of positive cash flow by Q1 2026, but analysts note that the current debt burden and negative margins will require disciplined execution to reach that goal.
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