Reborn Coffee converts $1M of outstanding debt into common equity

Reborn Coffee announced the conversion of $1.0 million of outstanding debt held by the Company’s Vice Chairman of the Board of Directors, Dennis Egidi, into common equity. On June 26, 2023, the Company secured a $1.0 million credit facility with DRE, owned and controlled by Dennis Egidi, to fund working capital requirements and operating expenses. Per the terms of the exchange agreement, DRE agreed to exchange, in consideration of surrender and termination of the Loan Note, with an outstanding balance of $1,000,000, for 1,666,667 shares of common stock, par value $0.0001 per share, of the Company at a price per share equal to $0.60 per share. Pursuant to the Exchange Agreement, the Company also granted DRE piggyback registration rights with regard to the Exchange Shares.