Bruush Oral Care

Kurta Law is investigating investor losses following purchases of Bruush Oral Care stock. Bruush Oral Care disclosed significant risks in its prospectus, risks that brokerage firms should have known about and disclosed to their customers. Brokerage firm representatives are required by Regulation Best Interest to only recommend investments that suit their investors’ risk profiles. Brokers who recommend overly risky investments violate securities industry rules and regulations.  

If you lost money on Bruush Oral Care stock or any other risky investment, consider contacting a securities attorney. You may be able to recover losses through a process called FINRA arbitration, which is the process brokerage firms often require investors to use rather than suing in civil court.  

Contact a securities attorney to review your case today: (877) 600-0098 or info@kurtalawfirm.com.  

What is Bruush Oral Care?  

According to the prospectus, Bruush Oral Care is an e-commerce business that sells oral health kits that include electronic toothbrushes and brush head refills.  

Bruush Oral Care Stock Offering 

In August 2022, Bruush Oral Care conducted an offering of 3.7 million units – each unit consisted of one share of common stock and one warrant to purchase one share of common stock. Each unit cost $4.16. Today, Bruush Oral Care stock trades for less than $1 per share. 

The prospectus states, “The offering price for shares of Common Stock and Warrants offered under this prospectus has been determined by negotiation among us and the underwriter. We cannot predict the price at which our shares of Common Stock or Warrants will trade upon the closing of this offering.”  

Risks Associated with Bruush Oral Care  

The risks associated with this investment are thoroughly discussed on page 7 of the prospectus. Kurta Law wants investors to know that the company disclosed the following risks related to investing in their stock:  

Concerns About the Business’s Ability to Continue  

According to the prospectus, the company’s auditor expressed substantial doubt about their ability to continue as a going concern. The prospectus specifically mentions net losses and limited cash reserves.  

Competition  

Oral care is a competitive space.  

• Bruush Oral Care stated that potential competitors have longer operating histories, greater brand recognition, better infrastructure, and better financial and marketing resources.  
• Launching new products or updating existing products might leave the company with inventory that they are not able to sell.  
• The market for electric toothbrushes is still emerging and the market might not grow as speedily or as much as Bruush Oral Care expects.  

Marketing 

Bruush Oral Care’s success largely depended on the success of its marketing campaigns. These depended on social media influencer collaboration, public relations initiatives, and affiliate partnerships – all of which come with significant costs.  

Reliance on Third-Party Contract Manufacturers 

Bruush Oral Care uses third-party manufacturers in Canada and China.  

• The company faces the risk that these manufacturers will not produce products on a timely basis, or at all.  
• Dealing with overseas manufacturers means it is more difficult for the company to ensure compliance with regulatory requirements.  
• Unfavorable changes in regulatory requirements or exchange rates could be financially changing for Bruush Oral Care.  
• Covid-19 could and related travel restrictions and quarantines could stymie the manufacturing process.  

Intellectual Property 

Bruush Oral Care stated that its success depended on its ability to defend its intellectual property. Intellectual property lawsuits can involve costly litigation.  

Aegis Capital Corp. Underwriting  

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Kurta Law Can Help  

If you have concerns about your investments, our experienced investment fraud lawyers offer free case evaluations.  We have experience handling cases of unsuitable investment recommendations. Call or email today to determine if you have a potential case: (877) 600-0098 or info@kurtalawfirm.com.