NuZee (d/b/a Coffee Blenders®) Announces Full Exercise and Closing of Over-Allotment Option

Rhea-AI Summary

NuZee, Inc. (NASDAQ: NUZE), a leading single-serve pour-over coffee producer, announced the full exercise and closing of an over-allotment option from its recent public offering. This resulted in the issuance of an additional 105,000 shares, bringing total proceeds to approximately $6.1 million, after expenses. The offering initially included 700,000 shares sold at $9.00 each. Funds will be used for working capital and corporate purposes. The offering was managed by The Benchmark Company, LLC, and was conducted under a registration statement declared effective by the SEC.

Positive

• Total net proceeds from the offering increased to approximately $6.1 million.
• The over-allotment option was fully exercised, indicating strong demand.

Negative

• The need for substantial additional funds was mentioned, signaling potential liquidity risks.

PLANO, Texas, July 21, 2020 /PRNewswire/ -- NuZee, Inc. (NASDAQ: NUZE) ("NuZee"), a single-serve pour-over coffee producer and co-packer, announced today the underwriters of its previously announced public offering of common stock have fully exercised and closed on their over-allotment option, resulting in the issuance of an additional 105,000 shares of its common stock. The option was granted in connection with the underwritten public offering (the "Offering") of 700,000 shares of NuZee common stock at a public offering price of $9.00 per share, which closed on June 23, 2020. The full exercise of the over-allotment option brings the total net proceeds to NuZee to approximately $6.1 million, after deducting underwriting discounts and commissions and estimated Offering expenses payable by NuZee. NuZee intends to use the net proceeds from the Offering for working capital and general corporate purposes.

The Benchmark Company, LLC acted as sole book-running manager for the Offering.

The Shares described above were offered by NuZee pursuant to a registration statement on Form S-1 (No. 333-234643) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on June 18, 2020. The Shares were offered only by means of a prospectus. A final prospectus relating to and describing the terms of the Offering was filed with the SEC. Electronic copies of the final prospectus relating to the Offering may be obtained by visiting the SEC's website located at http://www.sec.gov or by contacting The Benchmark Company, Attention: Prospectus Department, 150 E. 58th Street, 17th floor, New York, NY 10155, by email at prospectus@benchmarkcompany.com, or by telephone at (212) 312-6700.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any Shares, nor shall there be any sales of the Shares in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. NuZee cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect NuZee's current expectations, and NuZee does not undertake to update or revise these forward looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other NuZee statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond NuZee's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties, many of which are beyond our control, include the effects of the COVID-19 pandemic on our operations and general economic conditions and our need for substantial additional funds. For a description of additional factors that may cause NuZee's actual results, performance or expectations to differ from any forward-looking statements, please review the information set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC and in the final prospectus filed with the SEC.

About NuZee and Coffee Blenders
NuZee, Inc. (d/b/a Coffee Blenders®) is a specialty coffee company and a leading U.S. single-serve pour-over coffee producer and co-packer. We co-pack single-serve pour-over coffee products for customers in the U.S. market and also co-pack for the Korean market.

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SOURCE NuZee, Inc.

FAQ

What is the total amount raised by NuZee in its public offering?

NuZee raised approximately $6.1 million from its public offering.

When did NuZee close its public offering?

NuZee closed its public offering on June 23, 2020.

How many shares were issued in the over-allotment option for NuZee?

NuZee issued an additional 105,000 shares as part of the over-allotment option.

What company managed NuZee's public offering?

The Benchmark Company, LLC acted as the sole book-running manager for NuZee's public offering.

What will NuZee use the proceeds from the offering for?

NuZee intends to use the proceeds for working capital and general corporate purposes.