NuZee Inc (NASDAQ:NUZE) shares are trading lower by 11% to $1.41 Tuesday afternoon after the company entered into an agreement to issue and sell convertible notes worth $1.3 million.

The notes carry a 7% annual interest rate and mature in one year. Conversion of the notes into common stock is contingent upon shareholder approval, with a conversion price set at 94 cents per share.

Additionally, NuZee entered into a Registration Rights Agreement, committing to register the shares underlying the notes within a specific timeframe.

The full details of these agreements are included in the company's official filings.

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Should I Sell My NUZE Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Nuzee have decreased by 81.63% in the past year. An investor who bought shares of Nuzee at the beginning of the year would take a loss of $1.08 per share if they sold it today. The stock has fallen 60.56% over the past month, meaning an investor who bought shares on Jul. 1 would see a capital loss of $0.18.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Nuzee stock currently has an RSI of 15.11, indicating oversold conditions.

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NUZE has a 52-week high of $12.39 and a 52-week low of $1.01.