PERTH, AUSTRALIA — Medical device and consumer electronics manufacturer, Nuheara Limited (ASX:NUH) has announced that it has secured firm commitments from existing and new institutional and sophisticated investors to raise $4.4 million (before costs) at a premium to the company’s last closing price via a placement largely supported by Nuheara’s three largest shareholders being Realtek Semiconductor Corp, Farjoy and Salter Brothers.
Placement proceeds will enable Nuheara to accelerate its commercialization initiatives in the highly attractive US market, where the company has successfully launched its US FDA cleared self-fit hearing aid under the HP Hearing PRO.
With customer receipts now flowing, and US retailer interest and demand increasing, the company believes it has significant opportunity to scale up sales and production, underpinned by this placement.
“We are very encouraged by the strong level of support shown by existing investors. I would like to thank our existing shareholders for their continued support, in particular Nuheara’s three largest shareholders, during an exciting time for Nuheara as the company scales its commercialisation activities and ramps up revenues and cashflows.”
—Nuheara Co-founder and Managing Director, Justin Miller
“We see huge potential for Nuheara’s medical device in the very attractive US market, as well as other international markets,” continued Miller. “This placement allows us to accelerate growth initiatives to grow sales and customer receipts as the points of sale in the US continue growing, and we receive follow-on orders from the retail chains we are partnering with.”
Placement Details
Nuheara has successfully secured firm commitments to raise $4.4 million (before costs). The placement received strong support from existing and new institutional and sophisticated investors.
Under the Placement, Nuheara will issue 30,344,828 new fully paid ordinary shares in the company at an issue price of $0.145 per Placement Share. The issue price of $0.145 per Placement Share represents a 3.6% premium to the last closing share price on 2 June 2023. The placement will be undertaken in two tranches:
- Tranche 1 is unconditional and comprises the issue of 24,275,862 Placement Shares without shareholder approval under the Company’s existing ASX Listing Rule 7.1 placement capacity to raise approximately $3.5 million.
- Tranche 2 is conditional and comprises the issue of 6,068,966 Shares to Realtek to raise approximately $880,000 subject to shareholder approval under Listing Rule 10.11 being obtained at a General Meeting of Shareholders to be held in July 2023.
Placement Shares will rank equally with the Company’s existing ordinary shares on issue. Settlement of Tranche 1 of the Placement Shares is expected to occur on Friday 9 June 2023, with allotment and normal trading of Tranche 1 of the Placement Shares on Tuesday 13 June 2023.
Automic Markets acted as corporate advisor to the Placement.
ABOUT NUHEARA
Nuheara is a global leader in smart hearing technology which change people’s lives by enhancing the power to hear. As a global pioneer in Hearable products, Nuheara developed proprietary, multi-functional, personalised intelligent hearing devices that augments a person’s hearing. Nuheara is headquartered in Perth, Australia and was the first consumer wearables technology company to be listed on the Australian Securities Exchange (ASX). The company also has a USA office located in Seattle, Washington.
In 2016, the Company released its revolutionary wireless earbuds, IQbuds, which allow consumers to augment their hearing according to their personal hearing preferences and connect hands free with their voice-enabled smart devices. In 2020 Nuheara released its third-generation hearable the IQbuds² MAX.
In 2021, Nuheara transformed its operations to include medical device manufacturing for its hearing aid products to meet global demand for mild to moderate hearing loss. Nuheara products are now sold Direct to Consumer (DTC) and in major consumer electronics retailers, professional hearing clinics, pharmacies, and speciality retailers around the world. In 2022, Nuheara’s HP Hearing PRO was the first product cleared through the FDA’s 510(k) process for both 874.3325 self-fitting and the 800.30 OTC hearing aid classifications under a new product classification code “QUH”. The company’s mission is to transform the way people hear by creating smart hearing solutions that are both accessible and affordable.
Source: Nuheara
