BREA, Calif., USA – Reborn Coffee, Inc., a California-based retailer of specialty coffee, today announced the Company has secured a new $1.0 million credit facility with DRE, Inc. (“DRE”) to fund working capital requirements and operating expenses.
Dennis R. Egidi, Vice Chairman of the Board of Directors for Reborn Coffee, who 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 of 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 5 have been redeveloped over the past 5 years.
“This investment by DRE is a significant vote of confidence for what our team has been building at Reborn, said Jay Kim, Chief Executive Officer of Reborn. “It is particularly validating as Dennis has seen first-hand our accelerating growth and expansion strategy, new product innovation, and effective operational execution across our retail locations. We expect this capital infusion will extend our cash runway. We thank Dennis and DRE for their support as we continue to focus on sustained operational execution and year-over-year revenue growth.”
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.
