NuZee (d/b/a Coffee Blenders®) Closes Public Offering Of Units

Rhea-AI Summary

NuZee, a leader in single-serve pour-over coffee, has successfully completed its public offering of 2,777,777 units at $4.50 per unit, raising approximately $12.5 million in gross proceeds. Each unit comprises one share of common stock, a Series A warrant at $4.50, and a Series B warrant at $5.85. The funds will support working capital and corporate purposes. Aegis Capital Corp. managed the offering, which was executed under a shelf registration with the SEC.

Positive

• Raised gross proceeds of approximately $12,508,333 for working capital and general corporate purposes.
• Units included warrants that could provide additional capital.

Negative

• Potential dilution of existing shareholders due to the issuance of new shares and warrants.

PLANO, Texas, March 23, 2021 /PRNewswire/ -- NuZee, Inc. (Nasdaq: NUZE) ("NuZee"), a leading U.S. single serve pour over coffee co-packer, announced today the completion of its previously announced underwritten public offering of 2,777,777 units (the "Units"), at a price to the public of $4.50 per Unit. NuZee raised gross proceeds of approximately $12,508,333, before deducting underwriting discounts and commissions and estimated offering expenses payable by NuZee, which includes the exercise of the underwriter's option to purchase (i) 416,666 additional Series A Warrants (as defined below, with an initial exercise price of $4.50) at a purchase price of $0.01 per Series A Warrant sold pursuant to the full exercise of this component of the over-allotment option, and (ii) 416,666 additional Series B Warrants (as defined below, with an initial exercise price of $5.85) at a purchase price of $0.01 per Series B Warrant sold pursuant to the full exercise of this component of the over-allotment option.

The Units consist of (a) one share of common stock, par value $0.00001 per share (the "Common Stock"), (b) one Series A warrant to purchase one share of Common Stock with an initial exercise price of $4.50 per whole share (a "Series A Warrant") and (c) one Series B warrant to purchase one-half of a share of Common Stock with an initial exercise price of $5.85 per whole share (a "Series B Warrant"). NuZee intends to use the net proceeds from the offering for working capital and general corporate purposes.

Aegis Capital Corp. acted as sole book-running manager for the offering.

The Units were offered by NuZee pursuant to a shelf registration statement (including a prospectus) on Form S-3 (No. 333-248531) previously filed with and declared effective by the U.S. Securities and Exchange Commission (the "SEC"). The offering was made only by means of the written prospectus and prospectus supplement that form a part of the registration statement. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained by visiting the SEC's website located at http://www.sec.gov or by contacting Aegis Capital Corp., Syndicate Department, 810 Seventh Avenue, 11th Floor, New York, NY, 10019, telephone: 212-813-1010 or email: syndicate@aegiscap.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any Units, nor shall there be any sales of the Units 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: NuZee's plans to obtain funding for its operations, including funding necessary to develop, manufacture and commercialize its products; the impact to NuZee's business from the COVID-19 global crisis; general market acceptance of and demand for NuZee's products; and NuZee's commercialization, marketing and manufacturing capabilities and strategy. 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 NuZee's public reports and NuZee's other filings made 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 co-packer. NuZee co-packs single-serve pour-over coffee products for customers in the U.S. market and also co-packs for the Korean market.

 

 

 

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SOURCE NuZee, Inc.

FAQ

What is the purpose of NuZee's public offering on March 23, 2021?

NuZee's public offering aims to raise approximately $12.5 million for working capital and general corporate purposes.

What are the details of the units offered in NuZee's public offering?

The units consist of one share of common stock, a Series A warrant with an exercise price of $4.50, and a Series B warrant with an exercise price of $5.85.

Who managed the public offering for NuZee?

Aegis Capital Corp. acted as the sole book-running manager for NuZee's public offering.

How many units did NuZee offer in its recent public offering?

NuZee offered a total of 2,777,777 units in its public offering.

When did NuZee complete its public offering?

NuZee completed its public offering on March 23, 2021.