NuZee Completes Private Placement of Convertible Notes and Warrants

NuZee (NASDAQ: NUZE) recently closed the sale of convertible notes and warrants following a previously disclosed agreement with non-U.S. investors. The company, formally known as CIMG Inc., a Nevada corporation, had entered into a convertible note and warrant purchase agreement in December 2024 with certain investors for the private placement of convertible promissory notes totaling $10,000,000 and warrants to purchase up to 25,641,023 shares of the company’s common stock.

These notes bear an annual interest rate of 7% and are set to mature one year from the issuance date. The conversion of the notes into common stock and the exercise of warrants are subject to shareholder approval. The conversion price for the notes is $0.52 per share, while the exercise price for the warrants is $0.39 per share.

Additionally, a Registration Rights Agreement was established on December 12, 2024, which obligates NuZee to file a Registration Statement on Form S-1 with the SEC within 30 days following the filing of its audited financial statements for the fiscal year ending September 30, 2024, or five business days after stockholder approval of the transactions outlined in the Purchase Agreement, whichever occurs later.

The sale of these notes and warrants closed on January 16, 2025, and January 17, 2025, respectively. Six notes were issued to non-U.S. investors, along with warrants to purchase 19,230,767 shares of common stock. The company has successfully completed the sale of all notes and warrants as detailed in the Purchase Agreement.

While the specifics of the Purchase Agreement, notes, warrants, and Registration Rights Agreement were summarized, the full details and agreements can be found in the forms attached to the Current Report on Form 8-K filed by the company with the SEC on December 17, 2024.

The completion of this transaction marks a significant financial development for NuZee, positioning the company for potential growth and expansion in the future.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NuZee’s 8K filing here.

About NuZee

NuZee, Inc, together with its subsidiaries, manufactures, packs, and sells single-serve pour-over coffee and tea bag-style coffee for coffee roasters and food service companies in North America and South Korea. The company sells its products under Coffee Blenders, Twin Peaks, DRIPKIT, and Stone Brewing brand names.