BREA, Calif., Dec. 08, 2022 (GLOBE NEWSWIRE) -- Reborn Coffee, Inc. (NASDAQ: REBN) (“Reborn”, or the “Company”), a California-based retailer of specialty coffee, today announced it has signed a binding Letter of Intent (“LOI”) to acquire a specialty coffee shop and a roasting Research and Development facility in Daejeon, South Korea as part of its global expansion plan.
The coffee shop and roasting R&D facility have a solid customer base and are located in a prime site in Daejeon, South Korea, which is Korea’s fifth-largest metropolis with a population of over $1.5 million. The shop and the R&D facility have a total space of over 2,000 square feet with a roaster and a coffee extractor. Current annual sales from the shop and facility are approximately $400,000 per year.
Reborn plans to convert the coffee shop and facility to a flagship location and Reborn concept with an inviting store atmosphere which is designed for comfort and convenience and utilize the location as a headquarters for its franchise program in Korea. The Company expects to increase current sales through strategic marketing campaigns and through direct support from its US operations. In-house manufacturing of Reborn macaroons and cookies will be launched to appeal to local customers and expand product offerings.
The Company has also registered an information disclosure statement with the Korea Fair Trade Commission (KFTC) to launch a franchising program in the country. With a franchise registration, Reborn is expected to expand with a number of outlets in metropolitan areas throughout South Korea.
“This acquisition in South Korea marks the beginning of Reborn’s global growth strategy,” said Jay Kim, Chief Executive Officer of Reborn. “South Korea is one of the most dynamic markets within the Asia-Pacific region and coffee is one of the most popular beverages in the country. Establishing a flagship coffee shop and R&D facility in Daejeon positions us to introduce our brand in a major urban area and the location serves as an ideal launchpad for our franchising program.”
“With sales in excess of $400,000, we believe the acquisition will make a significant contribution to revenues in 2023 once we have rebranded to Reborn and launch our new products. We look forward to introducing this exciting location to Daejeon that will launch our Korean operations and serve as a model for our franchising program,” concluded Kim.
Closing of any potential acquisition is subject to final due diligence, negotiation and execution of a definitive purchase agreement and all necessary approvals. The Company expects to finalize the acquisition by the middle of January 2023.
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 section of our recently filed Registration Statement on Form S-1, as amended, and in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our recently filed Quarterly Report on Form 10-Q, 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 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 Tyson
Executive Vice President
MZ North America
REBN@mzgroup.us
949-491-8235
Company Contact:
Reborn Coffee, Inc.
ir@reborncoffee.com
