Reborn Coffee expands matcha operations in Asia

BREA, Calif. - Reborn Coffee Inc. (NASDAQ: REBN), a specialty coffee company with a market capitalization of $15.85 million and impressive gross profit margins of 62.81%, has announced the establishment of its Central China Supply Chain Headquarters in Dawu County, a hub for tea cultivation. The move, announced today, is part of a strategic initiative to source and distribute matcha-based products throughout Asia and the UAE. According to InvestingPro data, analysts expect both sales and net income growth for the company this year.

The company has entered into a partnership with a China-Japan joint venture that operates matcha farms and manufacturing facilities, securing a stable supply of high-quality matcha. This collaboration is expected to position Reborn as a major player in the matcha market, which traditionally recognizes only China, Japan, and Korea as authentic producers. With current annual revenue of $5.93 million and a year-to-date stock return of 109.04%, the company shows strong momentum despite InvestingPro analysis indicating rapid cash burn rates.

During a recent visit to Dawu County, Reborn Coffee’s CEO Jay Kim met with local government officials to formalize the cooperation. The partnership is supported by the Dawu County government, which has shown commitment to fostering international collaboration and promoting regional agricultural products.

Reborn’s strategic supply agreement with the China-Japan venture aims to leverage the reputation of Japanese matcha to set new quality and reliability standards. The company plans to distribute matcha products in key Asian markets, including Singapore, Thailand, Vietnam, Indonesia, and Korea, with Dubai and Malaysia serving as regional distribution centers.

Jay Kim underscored the importance of the agreement, stating it strengthens Reborn’s supply chain and lays the foundation for the company to lead in product quality and innovation.

Reborn Coffee continues to focus on delivering exceptional beverage experiences by sourcing premium ingredients and emphasizing global excellence. The company’s expansion into matcha distribution underscores its commitment to innovation and growth in the specialty beverage market.

This expansion news is based on a press release statement and comes amid Reborn’s ongoing efforts to enhance its global footprint and redefine the coffeehouse experience with technology-forward initiatives and high-quality products. Trading at $3.47, the stock currently sits near its InvestingPro Fair Value, with 14 additional ProTips available to subscribers covering growth prospects, financial health, and market performance. The company’s forward-looking statements are subject to inherent risks and uncertainties, which are detailed in its filings with the Securities and Exchange Commission.

In other recent news, Reborn Coffee Inc. has announced several strategic developments. The company has partnered with Eachome Shopping to expand its retail operations across China, aiming to enhance brand visibility and consumer engagement. This partnership aligns with Reborn Coffee’s broader plan for global branding and market expansion in Asia. Additionally, Reborn Coffee is expanding its European footprint with new flagship stores planned for Vienna, Florence, and Prague, under the guidance of Reborn Coffee Dubai. The Prague store is set to open in June 2025 to coincide with the peak tourist season.

In another development, Reborn Coffee has terminated its Standby Equity Purchase Agreement with Yorkville, effective February 12, 2025. This agreement, originally allowing the company to sell up to $5 million of its common stock, was ended early without any penalties or fees. During the agreement’s lifespan, Reborn Coffee did not sell any shares to Yorkville, aside from those issued as a commitment fee. These recent developments reflect Reborn Coffee’s ongoing efforts to strengthen its market presence and financial strategy.

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