In a recent 8K filing with the SEC, Reborn Coffee, Inc., a retail eating establishment based in Brea, California, disclosed the outcomes of its annual meeting of stockholders held on Thursday. The meeting saw the election of six board members and the ratification of the company's independent registered public accounting firm for the upcoming fiscal year.
The stockholders re-elected Farooq M. Arjomand, Jay Kim, Dennis R. Egidi, Sehan Kim, Andy Nasim, and Jennifer Tan to Reborn Coffee's Board of Directors. These directors will serve until the next annual meeting in 2025 or until their successors are duly elected and qualified. The election results showed a majority of votes in favor, with the least votes withheld for Sehan Kim and the most for Jay Kim. There were no broker non-votes affecting the election of directors.
Additionally, the appointment of BCRG Group as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified with an overwhelming majority of votes in favor and minimal votes against or abstained.
The third proposal, which involved the approval of the issuance of shares of common stock to YA II PN, LTD. in accordance with Nasdaq Listing Rule 5635(d), was also passed. This issuance pertains to shares exceeding the Exchange Cap as defined in the Convertible Promissory Note and related warrant issued on May 20, 2024.
The meeting had a quorum with 67.01% of the total outstanding shares represented, indicating a strong shareholder presence. This turnout reflects the shareholders’ active involvement in Reborn Coffee’s corporate governance.
In other recent news, Reborn Coffee Inc. has been making significant strides in its expansion plans. The company recently unveiled an award-winning eco-friendly product, the Reborn Tumbler, designed by Nooof, a brand known for its sustainable approach to product design.
The tumbler's launch is part of Reborn Coffee's broader introduction of innovative coffeeware. The company also announced a joint venture with Gaingan Humantech Co. LTD to open three new locations in Bangkok, Thailand, and a partnership with Chengdu Octaday Entertainment Group to open stores in Sichuan Province, China.
Reborn Coffee has secured a $500,000 investment through a convertible note from Quen Inno Tech Co., Ltd, which is expected to support its growth objectives. Furthermore, the company has made a strategic move by acquiring Bbang Ssaem Bakery, marking its entry into the combined coffee and bakery market. However, Reborn Coffee faces potential delisting from the Nasdaq Stock Market due to a delay in filing its quarterly financial report.
InvestingPro Insights
Reborn Coffee's recent shareholder meeting outcomes can be viewed alongside some revealing financial metrics from InvestingPro. Despite the company's impressive gross profit margin of 69.19% for the last twelve months as of Q2 2024, which aligns with the InvestingPro Tip highlighting "impressive gross profit margins," the company faces significant challenges.
The stock has experienced a substantial decline, with a -57.23% price return over the past three months. This downturn is reflected in the InvestingPro Tip noting that the "stock has taken a big hit over the last week" and "price has fallen significantly over the last three months."
Moreover, while shareholders approved the issuance of additional shares, it's worth noting that Reborn Coffee "operates with a significant debt burden" according to another InvestingPro Tip. This could be a concern given that the company's revenue for the last twelve months as of Q2 2024 was only $5.76 million.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Reborn Coffee, providing a deeper understanding of the company's financial health and market position.
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