Reborn Coffee, Inc. (NASDAQ: REBN) saw its shares fade Wednesday, on word the Company has secured a new $1-million credit facility with DRE, Inc. to fund working capital requirements and operating expenses.
Board Vice Chairman Dennis R. Egidi manages DRE and DRE’s credit facility demonstrates confidence in Reborn’s ongoing growth anticipated from company-operated store sales and other products, with store revenues expected to occur from both location and product expansion. Mr. Egidi joined Reborn Coffee Inc. as a Director and the Vice Chairman of the Board of Directors in June 2020. Mr. Egidi formed DRE, an Illinois real estate development company in 1993, developing over 30 affordable housing projects in Illinois, Ohio, Indiana, Iowa, and California, totaling approximately 5,000 units. Today, he continues to serve as President of DRE, and acts as Managing General Partner of 15 limited partnerships, of which five have been redeveloped over the past five years.
The new credit facility requires interest-only payments until maturity, bears variable interest at a rate equal to one percentage point in excess of that rate shown in the Wall Street Journal as the prime rate, never be less than 8% per year, and has a maturity date of May 31, 2025.
REBN shares lost 2.7 cents, or 3.3%, to 79 cents.
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