BREA, Calif. - Reborn Coffee Inc. (NASDAQ: REBN), a California-based specialty coffee retailer, is confronting the possibility of delisting from the Nasdaq Stock Market after failing to file its quarterly financial report on time. The company, known for its specialty-roasted coffee, received a notice from Nasdaq on Monday, stating that its delay in submitting the Form 10-Q for the fiscal year ended March 31, 2024, breached the exchange's listing rule 5250(c)(1).
The notice comes after Reborn Coffee's previous disengagement with its independent registered public accounting firm, BF Borgers CPA PC, on May 15, 2024. Subsequently, the company appointed BCRG Group as its new auditor. However, the transition has led to a delay in the review and filing of the company's financial statements for the quarter, which was due before the mandated filing date for the Quarterly Report on Form 10-Q.
Reborn Coffee was already under a Discretionary Panel Monitor until May 16, 2025, due to past compliance issues. This monitoring status means that the company is not entitled to the usual 60-day grace period to present a compliance plan, nor the potential 180-day extension. Instead, Reborn must appeal directly to the Nasdaq Hearings Panel by June 28, 2024, to avoid suspension of trading of its common stock at the market's open on July 2, 2024.
The company has announced its intention to request a hearing to appeal the delisting notification. In accordance with Nasdaq Listing Rule 5810(b), Reborn Coffee has made a public announcement regarding the receipt of the delisting notice to avoid a trading halt of its securities.
Reborn Coffee prides itself on its unique approach to sourcing, washing, roasting, and brewing coffee beans. Despite the current challenges, the company remains focused on delivering high-quality coffee experiences at its retail locations, kiosks, and cafes. This news is based on a press release statement issued by Reborn Coffee.
In other recent news, specialty coffee retailer Reborn Coffee Inc. has announced several strategic developments. The company has unveiled its products on Amazon (NASDAQ:AMZN) as part of its OMNI-channel strategy, with the goal of increasing its online market share and driving revenue growth. This move is expected to help Reborn Coffee tap into the growing specialty coffee segment, particularly in the United States.
In addition to this, Reborn Coffee has announced its intention to acquire a 55% majority stake in Istanbul-based Derin Lezzetler, a producer of artisan snacks and frozen bakery goods. This acquisition aligns with the company's strategy to expand into the health-conscious food market and increase its global presence.
Furthermore, Reborn Coffee has entered into a Master License Agreement with IAID Co., Ltd. to expand its presence into China, starting with a flagship store in Guangzhou. This collaboration aims to introduce Reborn Coffee's unique coffee culture to new markets and enhance the coffee experience for consumers.
InvestingPro Insights
As Reborn Coffee Inc. (NASDAQ: REBN) faces the possibility of delisting from the Nasdaq Stock Market, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Reborn Coffee has a market capitalization of $14.83 million, reflecting the market's current valuation of the company. Despite the challenges, analysts anticipate sales growth in the current year, with an impressive 83.74% revenue growth reported for the last twelve months as of Q1 2023. This growth is underscored by a substantial gross profit margin of 68.69%, indicating the company's ability to maintain profitability on its products.
InvestingPro Tips suggest that while Reborn Coffee has demonstrated an ability to generate sales, it is quickly burning through cash, which may impact its ability to make interest payments on debt. Additionally, the company's stock has experienced significant price volatility, with a 1-week price total return showing a drop of -16.21%, yet the 1-month and 3-month price total returns have surged by 73.24% and 528.43%, respectively. This volatility underscores the company's current financial uncertainty and the market's reaction to its operational developments.
Investors interested in a deeper dive into Reborn Coffee's financials and market performance can find additional InvestingPro Tips on the company's profile at Investing.com. There are currently 15 tips available that can provide more insights into the company's financial health and future prospects. For those looking to access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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