Reborn Coffee Faces Nasdaq Delisting for Sub-$1.00 Bid Price

TL;DR

**Reborn Coffee got a delisting notice from Nasdaq for low stock price, has until July 29 to fix it or get booted.**

AI Summary

Reborn Coffee, Inc. (REBN) announced on February 2, 2024, that it received a delisting notice from The Nasdaq Stock Market LLC because its common stock failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days. This is a critical development for investors because if Reborn Coffee cannot regain compliance by July 29, 2024, its shares will be delisted, making them harder to trade and potentially reducing their value significantly.

Why It Matters

Delisting from Nasdaq would severely impact the stock's liquidity and investor confidence, making it much harder for shareholders to sell their shares and potentially leading to a significant drop in value.

Risk Assessment

Risk Level: high — The company faces potential delisting from a major exchange, which is a severe blow to its public market viability and investor trust.

Analyst Insight

A smart investor would carefully evaluate the company's plan to regain Nasdaq compliance and consider the increased risk of holding shares that may become illiquid if delisted.

Key Numbers

• $1.00 — Minimum Bid Price (The threshold Reborn Coffee's stock failed to maintain for 30 consecutive business days.)
• 30 — Consecutive Business Days (The period over which the stock price was below the minimum bid requirement.)

Key Players & Entities

• Reborn Coffee, Inc. (company) — the registrant receiving the delisting notice
• The Nasdaq Stock Market LLC (company) — the exchange issuing the delisting notice
• $1.00 (dollar_amount) — the minimum bid price requirement
• February 2, 2024 (date) — date of the earliest event reported (delisting notice)
• July 29, 2024 (date) — deadline to regain compliance with Nasdaq listing rules

Forward-Looking Statements

• Reborn Coffee will implement a reverse stock split to increase its share price above $1.00. (Reborn Coffee, Inc.) — medium confidence, target: Before July 29, 2024
• The stock price of REBN will remain volatile as investors react to delisting concerns. (REBN) — high confidence, target: Next 6 months

FAQ

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share REBN The Nasdaq
• $1.00 — ce had a closing bid price greater than $1.00 for ten consecutive trading days. The C

Filing Documents

• ea192958-8k_reborn.htm (8-K) — 25KB
• 0001213900-24-010577.txt ( ) — 192KB
• rebn-20240202.xsd (EX-101.SCH) — 3KB
• rebn-20240202_lab.xml (EX-101.LAB) — 33KB
• rebn-20240202_pre.xml (EX-101.PRE) — 22KB
• ea192958-8k_reborn_htm.xml (XML) — 3KB

01 Notice of Delisting or Failure to

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. As previously disclosed, Reborn Coffee, Inc. (the "Company") requested a hearing by the Nasdaq Hearings Panel (the "Panel") of The Nasdaq Stock Market LLC ("Nasdaq") to appeal delisting determinations made by the Listing Qualifications Department (the "Staff") of Nasdaq: (i) on April 28, 2023 for failure to comply with the bid price requirement of Nasdaq Listing Rule 5550(a)(2) (the "Bid Price Rule"), (ii) on September 5, 2023 for failure to comply with the minimum stockholders equity required for continued listing on Nasdaq, or any of the alternative requirement to Nasdaq Listing Rule 5550(b) (the "Equity Rule"), and (iii) on January 4, 2024 for failure to hold an annual meeting of stockholders for the fiscal year ended December 31, 2023 as required by Nasdaq Listing Rule 5620(a) (the "Meeting Rule"). At the Panel hearing, which occurred on January 18, 2024, the Company, represented by members of senior management and outside counsel, advised that the Company intended to regain compliance with the Bid Price Rule by effecting a reverse stock split, which the Company effected by filing a Certificate of Amendment to the Company's Certificate of Incorporation to effect a reverse stock split of its issued common stock in the ratio of 1-for 8 and the common stock began trading on a post-reverse stock split basis on January 22, 2024 – the Company's common stock has since had a closing bid price greater than $1.00 for ten consecutive trading days. The Company also informed the Panel that it intends to regain compliance with the Equity Rule by completing one or more equity financings. Finally, the Company informed the Panel that it intends to regain compliance with the Meeting Rule by holding an annual meeting of stockholders in the first quarter of 2024. As such, the Company proposed to the Panel a compliance plan that included a tentative schedule to complete t

View Full Filing

View this 8-K filing on SEC EDGAR