Agreement Secures the Conversion of Proven Supply Volume, Improves Margin Structure, and Adds a Tangible Revenue Base

BREA, Calif., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (NASDAQ:REBN) (the "Company"), a leader in the specialty coffee market, announced today that it has signed an agricultural products supply agreement valued at a minimum of $20 million annually with The Mighty Oak Inc., a company with strong supply capabilities across major North American retail channels. This agreement follows the recent announcement of Reborn Coffee entering into a Strategic Memorandum of Understanding (the "MOU") with The Mighty Oak Inc. establishing a framework for cooperation in the sourcing, supply, and sale of agricultural products across the United States.

Securing a Tangible Revenue Base Through the Conversion of Proven Supply Volume

At the core of this agreement is a structure in which Reborn Coffee assumes responsibility for key produce supply, building on the stable delivery demand and vendor codes that The Mighty Oak Inc. has established across major Korean-American grocery chains and online and offline channels in North America. By reliably converting The Mighty Oak Inc.'s proven, existing supply volume into Reborn Coffee's supply chain, the company minimizes the execution uncertainty associated with new contracts and firmly establishes a new revenue base of at least $20 million per year. As a result, Reborn Coffee's projected annual total revenue is expected to grow to approximately $28 million, roughly 3.5 times its reported 2025 results.

Improving the Margin Structure Through In-House Sourcing and Logistics

Through this agreement, Reborn Coffee is formally launching its North American agricultural products import and supply business. The company plans to reduce outsourced logistics costs and continuously improve its operating margin by (i) adopting an AI-based demand forecasting solution for precise supply-and-demand management, and (ii) progressively transitioning logistics in-house through its subsidiary, Reborn Logistics.

"By combining the stable supply demand and channel network that The Mighty Oak has built with Reborn Coffee's supply capabilities, we have created a foundation for tangible and rapid revenue generation," said Jung Jae Lim, Chief Executive Officer of Reborn Coffee. "By layering our AI demand forecasting system and our subsidiary's logistics capabilities onto this stably converted supply chain, our goal is to expand our top line, establish a solid, profitability-focused financial structure, and enhance shareholder value."

Simon Jung, Chief Executive Officer of The Mighty Oak, added, "Drawing on my experience over the past 20 years overseeing large-scale supply chains in the North American agricultural products market and driving annual revenue growth of more than $70 million¹, advanced technological innovation is essential to on-the-ground supply chain operations. The Mighty Oak Inc. has demonstrated a powerful sales network by growing monthly revenue approximately fourfold within three months of its founding. By combining Reborn Coffee's sophisticated AI demand forecasting solution and in-house logistics capabilities with our sales network, we will move beyond simply shifting volume to build a high-value-added supply chain model that transforms the margin structure. Through the synergy between our two companies, we aim to create a success story in which Reborn Coffee sets a new standard in the North American B2B supply chain market."

The detailed terms and other key information regarding this agreement can be found in the Form 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC).

1. The $70 million figure above reflects Mr. Jung's prior professional track record at previous companies, and the post-founding growth figures are The Mighty Oak Inc.'s own results. They are not statements of Reborn Coffee's results and are not projections of the Company's future performance.

About Reborn Coffee

Reborn Coffee, Inc. (NASDAQ:REBN) is a California-based specialty coffee retailer focused on delivering high-quality, handcrafted coffee experiences. With a growing global footprint and a dedication to innovation, Reborn is redefining the coffeehouse model through its premium products and technology-forward initiatives.

About Mighty Oaks

The Mighty Oak Inc. is a U.S.-based supplier of agricultural products serving grocery retail channels in the United States. Information in this release regarding The Mighty Oak Inc. has been provided by The Mighty Oak Inc.

Forward-Looking Statements

All statements in this release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our recent filings with the Securities and Exchange Commission ("SEC") including our Form 10-K for the year ended December 31, 2025, which can be found on the SEC's website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the Company's ability to continue as a going concern as indicated in an explanatory paragraph in the Company's independent registered public accounting firm's audit report as a result of recurring net losses, among other things, the Company's ability to successfully open the additional locations described herein as planned or at all, the Company's ability to expand its business both within and outside of California (including as it relates to increasing sales and growing Average Unit Volumes at our existing stores), the degree of customer loyalty to our stores and products, the fluctuation of economic conditions, competition and inflation. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contacts

Investor Relations Contact:

Chris Tyson

Executive Vice President

MZ North America

REBN@mzgroup.us

949-491-8235

Company Contact:

Reborn Coffee, Inc.

ir@reborncoffee.com