Reborn Coffee, Inc. has announced a 1-for-8 reverse stock split. This corporate action is typically used by companies to boost their share price by reducing the number of shares outstanding, which can help them meet minimum price requirements for stock exchanges and appear more attractive to investors. However, reverse splits can also be perceived negatively as they may signal that a company is in distress and trying to avoid delisting. The immediate effect on the stock price is an increase in the per-share price, but the market capitalization remains the same since the value of the company does not change.