NuZee Prices $3.4 Million Underwritten Public Offering of Common Stock

Rhea-AI Summary

NuZee, Inc. (NASDAQ: NUZE) announced an underwritten public offering of 4,200,000 shares at $0.82 per share, aiming for gross proceeds of approximately $3.4 million. The offering is managed by Maxim Group LLC and includes a 45-day option for the underwriter to purchase up to an additional 630,000 shares. The closing is expected around August 10, 2022, subject to conditions. The shares are offered under an effective shelf registration with the SEC. Forward-looking statements indicate potential risks including market conditions and reliance on third-party roasters.

Positive

• Offering of 4,200,000 shares expected to raise approximately $3.4 million.
• Underwriter has an option to purchase an additional 630,000 shares, potentially increasing total proceeds.
• The offering is part of an effective shelf registration, streamlining future capital raises.

Negative

• Potential dilution of existing shareholders due to new share issuance.
• Risks related to market conditions could impact the success of the offering.
• Reliance on third-party roasters for product manufacturing may introduce operational uncertainties.

PLANO, Texas, Aug. 7, 2022 /PRNewswire/ -- NuZee, Inc. (NASDAQ: NUZE), a leading U.S. producer and co-packer of single serve coffee formats, today announced the pricing of its underwritten public offering of 4,200,000 shares of its common stock at a public offering price of $0.82 per share, resulting in anticipated gross proceeds to NuZee of approximately $3.4 million, before deducting underwriting discounts and commissions and offering expenses.

Maxim Group LLC is acting as the sole book-running manager for the offering.

NuZee has granted the underwriter a 45-day option to purchase up to an additional 630,000 shares at the public offering price, less underwriting discounts and commissions. The public offering is expected to close on or about August 10, 2022, subject to customary closing conditions.

The securities are being offered pursuant to an effective 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 securities may be offered only by means of a written prospectus and prospectus supplement that form a part of the effective registration statement. A preliminary prospectus supplement relating to and describing the terms of the public offering has been filed with the SEC and is available on the SEC's website located at www.sec.gov.  A final prospectus supplement will be filed with the SEC and will form a part of the effective registration statement. Electronic copies of the preliminary prospectus supplement and, when available, copies of the final prospectus supplement and accompanying prospectus relating to the public offering may be obtained by contacting Maxim Group LLC, 300 Park Avenue, New York, NY 10022, or by telephone at (212) 895-3745.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the 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. Statements related to, among other things, the consummation of the offering of common stock and potential changes in market conditions constitute forward-looking statements. These risks and uncertainties, many of which are beyond our control, include: NuZee's plan to obtain funding for its operations, including funding necessary to develop, manufacture and commercialize its products; the impact to NuZee's business from COVID 19, including supply chain interruptions; general market acceptance of and demand for NuZee's products; NuZee's reliance on third-party roasters to roast and blend coffee beans necessary to produce its products and provide its co-packing services; NuZee's ability to successfully achieve the anticipated results of strategic transactions; the fact that certain of NuZee's single serve coffee products are expected to be manufactured, processed and packaged for NuZee by its new partner on a purchase order basis pursuant to the agreement between the parties; the fact that sales are completed on a purchase order basis without any written agreement between NuZee and its customers; 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

NuZee, Inc., (NASDAQ: NUZE) is a leading co-packing company for single serve coffee formats that partners with companies to help them develop within the single serve and private label coffee category.

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SOURCE NuZee, Inc.

FAQ

What is the price and amount of NuZee's public offering?

NuZee is offering 4,200,000 shares at a price of $0.82 per share, aiming for gross proceeds of approximately $3.4 million.

When is the expected closing date for NuZee's public offering?

The expected closing date for the offering is around August 10, 2022, subject to customary conditions.

What is the purpose of NuZee's public offering?

The proceeds from the public offering are intended to fund operations and support the development of NuZee's single serve coffee products.

Who is managing NuZee's public offering?

Maxim Group LLC is acting as the sole book-running manager for the public offering.

What risks are associated with NuZee's public offering?

Risks include market condition impacts, potential dilution for existing shareholders, and reliance on third-party roasters for manufacturing.