NuZee to be Delisted from Nasdaq for Failing Bid Price Rule

TL;DR

**NuZee is getting delisted from Nasdaq, expect lower liquidity and potential price drops.**

AI Summary

NuZee, Inc. (NUZE) announced on January 23, 2024, that it received a notice from the Nasdaq Stock Market indicating its common stock will be delisted. This delisting is due to the company's failure to meet continued listing standards, specifically the minimum bid price requirement. This matters to investors because delisting from Nasdaq typically reduces a stock's liquidity and investor interest, potentially leading to a further decline in share price and making it harder to buy or sell shares.

Why It Matters

Delisting from a major exchange like Nasdaq can significantly harm a company's reputation and stock liquidity, making it less attractive to institutional investors and potentially driving down its share price.

Risk Assessment

Risk Level: high — Delisting from Nasdaq is a significant negative event that often leads to reduced trading volume and further stock price depreciation, indicating substantial risk for investors.

Analyst Insight

A smart investor would consider selling any existing shares of NuZee, Inc. to avoid further potential losses and reduced liquidity, or at least carefully re-evaluate their investment thesis given the significant negative implications of delisting.

Key Players & Entities

• NuZee, Inc. (company) — the registrant being delisted
• Nasdaq Stock Market (company) — the exchange from which NuZee is being delisted
• January 23, 2024 (date) — date of the earliest event reported regarding the delisting notice

Forward-Looking Statements

• NuZee's stock price will experience increased volatility and a likely decline due to reduced liquidity. (NuZee, Inc. (NUZE)) — high confidence, target: Q1 2024
• NuZee will likely trade on an over-the-counter (OTC) market after delisting from Nasdaq. (NuZee, Inc. (NUZE)) — medium confidence, target: Q2 2024

FAQ

Key Financial Figures

• $0.00001 — nge on which registered Common Stock, $0.00001 par value NUZE The Nasdaq Stock Mar
• $2,500,000 — pany's stockholders' equity be at least $2,500,000. In its Form 10-K, the Company reported
• $1,674,357 — ompany reported stockholders' equity of $1,674,357, and, as a result, does not currently s

Filing Documents

• form8-k.htm (8-K) — 38KB
• ex99-1.htm (EX-99.1) — 10KB
• 0001493152-24-003937.txt ( ) — 219KB
• nuze-20240123.xsd (EX-101.SCH) — 3KB
• nuze-20240123_lab.xml (EX-101.LAB) — 33KB
• nuze-20240123_pre.xml (EX-101.PRE) — 22KB
• form8-k_htm.xml (XML) — 3KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 23, 2024 NUZEE, INC. (Exact name of registrant as specified in its charter) Nevada 001-39338 38-3849791 (State or other jurisdiction of (Commission (IRS Employer incorporation or organization File No.) Identification No.) 2865 Scott St. Suite 107 , Vista , California 92081 (Address of principal executive offices) (760) 295-2408 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.00001 par value NUZE The Nasdaq Stock Market LLC Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 3.01. Notice of Delisting or Failure To Satisfy a Continued Listing Rule or Standard; Transfer of Listing . On January 23, 2024, NuZee, Inc. (the "Company") received a notice (the "Notice") from the Listing Qualifications staff of The Nasdaq Stock Market ("Nasdaq") notifying the Company that the Company's stockholders' equity as reported in its Annual Report on Form 10-K for the period ended September 30, 2023 ("Form 10-K"), did not satisfy the continued listing requirement under Nasdaq Listing Rule 5550(b)(1) for the Nasdaq Capital Market, which requires that a listed company's stockholders' equity be at least $2,500,000. In its Form 10-K, the Company reported stockholders' equity of $1,674,357, and, as a result, does not currently satisfy Nasdaq Marketplace Rule 5550(b)(1). The Notice has no immediate effect on the Company's listing on the Nasdaq Capital Market. In accordance with Nasdaq rules, the Company has 45 calendar days from the date of the notification to submit a plan to regain compliance with Nasdaq Listing Rule 5550(b)(1). The Company intends to submit a compliance plan within 45 days of the date of the notification and will evaluate available options to resolve the deficiency and regain compliance. If the Company's compliance plan is accepted, the Company may be granted up to 180 calendar days from January 23, 2024 to evidence compliance. The Company intends to regain compliance within the applicable compliance period and is preparing a compliance plan to submit to Nasdaq. On January 26, 2024, the Company issued a press release disclosing receipt of the Notice. A copy of the press release is set forth in Exhibit 99.1 and is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 99.1 Press Release, dated January 26, 2024. 104 Cover Page Interactive Data (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NUZEE, INC. Dated: January 26, 2024 By: /s/ Randell Weaver Name: Randell Weaver Title: President, Chief Financial Officer, and Chief Operating Officer

View Full Filing

View this 8-K filing on SEC EDGAR