Reborn Coffee Expands to South Korea with Acquisition of Specialty Coffee Shop and Roasting R&D Facility in Daejeon
December 08 2022 - 8:31AM
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 TysonExecutive
Vice PresidentMZ North AmericaREBN@mzgroup.us 949-491-8235
Company Contact:Reborn Coffee,
Inc.ir@reborncoffee.com
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