RICHARDSON, Texas, Dec. 27,
2022 /PRNewswire/ -- NuZee, Inc. (NASDAQ: NUZE)
("NuZee" or "the Company"), a leading U.S. producer and co-packer
of single serve coffee formats, announced today that it intends to
effect a 1-for-35 reverse stock split of its issued and outstanding
shares of common stock.
As previously disclosed, at the Company's Special Meeting of
Stockholders ("Special Meeting") held on December 9, 2022, the stockholders of the Company
approved a reverse stock split of the Company's issued and
outstanding shares of its common stock and authorized the Board of
Directors (the "Board") to select the ratio of the reverse stock
split within a range from 1-for-10 to 1-for-50. The Board has since
exercised such discretion to effect a 1-for-35 reverse stock
split.
The reverse stock split will become effective on Wednesday, December 28, 2022 upon filing with the
Nevada Secretary of State of an
amendment to the Company's articles of incorporation. The Company's
common stock is expected to begin trading on a split-adjusted basis
under a new CUSIP when the market opens on Thursday, December 29, 2022. The Company's common
stock will continue to trade on the Nasdaq Capital Market under the
symbol "NUZE." The reverse stock split is intended to increase the
per share trading price of the Company's common stock to enable the
Company to regain compliance with the minimum bid price requirement
for continued listing on the Nasdaq Capital Market.
The 1-for-35 reverse stock split will automatically convert 35
current shares of the Company's common stock into one share of
common stock. No fractional shares will be issued in connection
with the reverse stock split. Stockholders who otherwise would be
entitled to receive fractional shares of the Company's common stock
shall be entitled to receive such additional fraction of a share of
the Company's common stock as is necessary to increase the
fractional shares to a full share. The reverse stock split did
not change the par value of the common stock or the authorized
number of shares of common stock.
Proportional adjustments also will be made to the exercise and
conversion prices of the Company's outstanding stock options and
warrants, and to the number of shares issued and issuable under the
Company's stock incentive plans.
Stockholders holding their shares electronically in book-entry
form are not required to take any action to receive post-split
shares. Stockholders owning shares through a bank, broker or other
nominee will have their positions automatically adjusted to reflect
the reverse stock split, subject to brokers' particular processes,
and will not be required to take any action in connection with the
reverse stock split. For those stockholders holding physical stock
certificates, the Company's transfer agent, V Stock Transfer, LLC,
will send instructions for exchanging those certificates for shares
held electronically in book-entry form or for new certificates, in
either case representing the post-split number of shares.
In connection with the reverse stock split, the Company's CUSIP
number will change to 67073S307 at the market open on Thursday, December 29, 2022.
About NuZee Coffee
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.
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 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 partners on a purchase order basis
pursuant to agreements 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
Securities and Exchange Commission.
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SOURCE NuZee, Inc.