SCHEDULE: Arena Investors Discloses 9.99% Stake in Reborn Coffee

Arena Investors and its affiliates have reported a combined beneficial ownership of 9.99% in Reborn Coffee, Inc. common stock as of June 30, 2025.

Summary

• Arena Investors, LP, along with its general partner Arena Investors GP, LLC, and several affiliated investment vehicles (Arena Business Solutions Global SPC II, LTD., Arena Special Opportunities (Offshore) Master II, LP, Arena Special Opportunities Partners (Offshore) GP II, LLC, Arena Special Opportunities Partners III, LP, and Arena Special Opportunities Partners III GP, LLC), collectively reported beneficial ownership of Reborn Coffee, Inc. common stock.
• As of June 30, 2025, Arena Investors, LP and Arena Investors GP, LLC, reported an aggregate beneficial ownership of 533,764 shares of Reborn Coffee, Inc. common stock, representing 9.99% of the class.
• This ownership includes 494,084 shares held by Arena Business Solutions Global SPC II, LTD. (9.3%), 33,166 shares held by Arena Special Opportunities (Offshore) Master II, LP (0.6%), and 12,704 shares held by Arena Special Opportunities Partners III, LP (0.2%).
• The percentage of ownership is calculated based on 5,303,306 shares of common stock outstanding as of May 12, 2025, as reported by Reborn Coffee, Inc. in its Form 10-Q filed on May 20, 2025, plus shares underlying derivative securities exercisable within 60 days (33,166 shares for ASOFM2 and 12,704 shares for ASOPIII).
• The reporting persons disclaim that the securities were acquired or are held for the purpose of or with the effect of changing or influencing the control of Reborn Coffee, Inc.

Sentiment

Score: 6

Explanation: The filing indicates a significant passive ownership stake by Arena Investors and its affiliates in Reborn Coffee, which can be viewed as a vote of confidence from an institutional investor, though it does not imply active engagement or control. This is generally a neutral to slightly positive signal.

Positives

• The disclosure of a significant passive stake by an institutional investor like Arena Investors may signal confidence in Reborn Coffee, Inc.'s long-term prospects.
• Increased institutional ownership can sometimes lead to greater market liquidity and investor interest in the stock.

Risks

• The filing explicitly states that the shares were not acquired for the purpose of changing or influencing control of the issuer, mitigating concerns about potential activist investor actions that could disrupt management or strategy.
• As with any investment, the value of the shares is subject to market fluctuations and the operational performance of Reborn Coffee, Inc.

Future Outlook

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Industry Context

This filing indicates significant institutional interest in Reborn Coffee, a company operating in the competitive coffee industry. Such Schedule 13G filings provide transparency on substantial passive ownership stakes, which can influence market perception and potentially signal a vote of confidence from sophisticated investors in the company's long-term prospects within its sector.

Comparison to Industry Standards

• This is a standard Schedule 13G filing, which is used by passive investors who acquire more than 5% but less than 20% of a company's voting securities and do not intend to influence or control the issuer.
• Many institutional investors, such as mutual funds, pension funds, and asset managers like Arena Investors, routinely file 13Gs for their passive holdings across various public companies, including those in the consumer goods and food & beverage sectors.
• The 9.99% stake is just below the 10% threshold, which is a common level for institutional investors to hold without triggering more stringent reporting or activist implications often associated with Schedule 13D filings.
• Comparable passive stakes are frequently observed from large investment firms in other publicly traded coffee companies or restaurant chains, such as Starbucks Corporation (SBUX) or Dutch Bros Inc. (BROS), where institutional ownership is a significant component of the shareholder base.

Stakeholder Impact

• Shareholders gain transparency regarding a significant institutional investor's stake in the company, which may influence market sentiment and trading activity.
• The presence of a large institutional investor can sometimes provide a degree of stability to the shareholder base.

Key Dates

Recommendation

The filing indicates a substantial passive ownership stake by Arena Investors and its affiliates in Reborn Coffee. While this signals institutional interest and potential confidence in the company, a Schedule 13G does not provide operational or financial performance data to warrant a stronger recommendation. Investors should consider this as a data point regarding institutional positioning, but further fundamental analysis of Reborn Coffee's business operations and financial health is required before making definitive investment decisions.

Keywords

Reborn Coffee, Arena Investors, Schedule 13G, Common Stock, Institutional Ownership, Beneficial Ownership, SEC Filing, Investment, Coffee Industry