Jan. 6 at 2:19 PM
$REBN used equity issuances and a warrant exchange to fix its Nasdaq stockholders’ equity deficiency, avoid imminent delisting, and clean up its balance sheet without using its
$50M equity line (yet).
live short interest is 2.44%, CTB 10
1. Warrant Exchange (Arena Investors)
Arena Investors originally held 337,765 warrants
On Dec 31, 2025, those warrants were cancelled
In exchange, Arena received 185,771 shares of common stock
Result:
Dilution (new shares issued)
Elimination of ~
$1.31M in derivative liability
Cleaner balance sheet, lower accounting volatility
This is a warrant-for-equity swap, not new cash.
2. Prior Capital Raise (October 2025)
Sold 1,192,661 shares at
$5.45
Raised
$6.5M gross from a single accredited investor
Funded in tranches, now fully received
This is the primary cash injection propping up equity.
3. Nasdaq Compliance Situation
Company was below Nasdaq’s Stockholders’ Equity Requirement
Requested a Nasdaq hearing, which paused delisting
Actions taken to regain compliance:
$6.5M equity raise
Warrant exchange eliminating
$1.3M liability
Continued operations (despite losses)
Company estimates:
Shareholders’ equity as of Dec 31, 2025: ~
$3.4M
This is barely above Nasdaq’s minimum requirement
Nasdaq decision is pending. Compliance is not yet confirmed.
4. Operating Reality (Not Spin)
Q4 2025 estimated net loss: ~
$986K
Despite the loss, accounting adjustments + equity issuance keep them compliant
Company projects for FY 2026:
Revenue: ~
$10.3M
Net income: ~
$13K (essentially breakeven)
These are management projections, not guarantees.
5. Equity Line (Overhang)
Company has a
$50M equity line with Arena
Currently unused
Still available → significant future dilution risk
This is a latent overhang, not an immediate event.
What This Tells You Strategically
1. This is a classic “Nasdaq survival package”
Equity raise + liability cleanup
Minimal margin for error
Heavy reliance on friendly capital
2. Arena Investors are deeply embedded
Equity investor
Warrant holder
Equity line provider
Balance sheet counterparty
Arena is effectively a financial sponsor, not just an investor.
3. Dilution is the tool of choice
Warrants → shares
Shares → compliance
Equity line still unused but looming
No sign of operating cash flow solving this yet.
Bottom Line (Blunt)
This filing is about staying listed, not growth
Future dilution risk remains high via the unused equity line. Pullback would be nice to before retesting major moving averages and pumping volume for equity line.
