Nuzee

Kurta Law is investigating broker recommendations of Nuzee shares (NASDAQ: NUZE). These stocks were extremely high risk, which every broker knew or should have known. Securities rules and regulations are meant to protect investors from overly risky investments. Regulation Best Interest, for instance, requires brokers to consider their customers’ risk tolerance and to exercise care and skill when making investment recommendations. All of the risks associated with this investment were clearly identified in the prospectus, which brokerage firm representatives should have reviewed before approving this investment for recommendation to clients. The prospectus is the document that companies file with the Securities and Exchange Commission when registering their securities for sale.  

If you believe you suffered stock losses as a result of broker fraud or misconduct, contact Kurta Law today. Call (877) 600-0098 or email info@kurtalawfirm.com.  

The Offering  

The prospectus dated March 19, 2021, announced that Nuzee was offering 2,777,777 units. Each unit consisted of one share of common stock, one Series A warrant to purchase one share of common stock, and one Series B warrant to purchase one-half of a share of common stock.  

“Warrants” give investors the right to purchase securities for a certain price by a specified deadline.  

• The Series A warrants will have an initial exercise price equal to $4.50 per whole share of common stock.  
• Series B will have an initial exercise price of $5.85 per whole share of common stock.  

As of April 11, 2024, shares of Nuzee sold for $1.23 per share.  

About Nuzee 

According to the prospectus, Nuzee is a specialty coffee company and a commercial-scale producer of single-serve pour-over coffee products.  

Risks Related to the Nuzee Offering  

The following risks are clearly disclosed. You can read the complete list on page S-9 of the prospectus.  

Competition 

Developments in competitive products or technologies could make it more difficult for Nuzee to make money.  

Regulatory Actions  

Nuzee’s new products may be subject to regulatory actions that could depress their ability to generate revenue.  

Uncertainty Regarding a Market for Securities  

Although the common stock was listed on NASDAQ at the time of filing the prospectus, there was no guarantee that the active trading market for this company would be sustained. The NASDAQ capital market could delist the stock if it fails to meet applicable listing requirements.  

Warrants are Speculative  

Warrants in this offering give investors the right to purchase shares of NUZE for $4.50 and $5.85, respectively. As of April 11, 2024, shares of NUZE trade for less than $2.00. The warrants expire after five years and could result in a total loss for investors.  

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  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.