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BREA, Calif. - Reborn Coffee Inc. (NASDAQ:REBN), a specialty coffee retailer with a market capitalization of $13.84 million and impressive gross profit margins of 55%, has signed a licensing agreement with The Arjomand Group and IG International to expand into Georgia and Armenia, the company announced Tuesday. According to InvestingPro analysis, the company appears slightly undervalued at its current price of $2.61.
The agreement grants IG International exclusive rights to develop and operate Reborn Coffee-branded locations across both countries. This partnership represents Reborn’s entry into the Caucasus region, positioning the brand in markets with growing consumer demand and increasing alignment with European economic standards. InvestingPro data reveals that analysts expect both revenue and net income growth for the company this year, supporting its expansion strategy. (Discover 12 more exclusive InvestingPro Tips for REBN.)
"This partnership across Georgia and Armenia marks a powerful next step in our global strategy," said Jay Kim, CEO of Reborn Coffee, in the press release.
IG International, which has investments in real estate, consumer services, and logistics, will oversee the rollout of Reborn Coffee stores in metropolitan areas including Tbilisi, Batumi, and Yerevan.
The licensing agreement includes an initial fee and a milestone-based payment schedule, designed to generate recurring revenue for Reborn without requiring capital investment from the company.
This expansion comes as Georgian Prime Minister Irakli Kobakhidze recently reaffirmed the country’s European integration process in a meeting with the local business community, signaling continued momentum for foreign investment.
The company stated that both Georgia and Armenia offer strategic positioning as economic gateways between Europe and Asia, with pro-business environments and growing café cultures.
This agreement follows Reborn’s international expansion efforts across the Middle East, Asia, and Europe through master franchise and licensing agreements, according to the company’s statement. With current annual revenue of $6.1 million and a projected sales growth of over 300% for fiscal year 2025, the company’s international expansion strategy appears to be gaining momentum.
In other recent news, Reborn Coffee Inc. has entered into a master licensing agreement valued at $1.7 million with the Arjomand Group. This deal will allow the development of Reborn Coffee-branded retail locations and product lines across the Middle East, Europe, and MENA regions. Additionally, Reborn Coffee received a delisting notice from the Nasdaq Stock Market due to its stockholders’ equity falling below the required minimum threshold. The company reported equity of $415,582, significantly under the $2.5 million requirement, with a deadline of July 13, 2025, to submit a compliance plan.
In efforts to enhance its operations, Reborn Coffee has signed a Memorandum of Understanding with Tori AI to integrate artificial intelligence into its services, focusing on dynamic ordering and inventory management. This AI-driven initiative is set to begin at a new drive-thru location in Las Vegas. Furthermore, Reborn Coffee has partnered with Otonomus Hotel to introduce an autonomous drive-thru coffee service and premium in-suite coffee offerings. This collaboration aims to provide a seamless coffee experience through advanced AI technology.
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