nuheara

Nuheara Announces $7.6M Capital Raise to Support Growth

PERTH, AUSTRALIA — Nuheara Limited (ASX:NUH) has announced a Capital Raising comprising:

  • $3.0 million to be invested by United States-based Healthcare 2030, LLC;
  • $1.6 million private placement commitments from existing and new professional sophisticated investors; and
  • A Share Purchase Plan aiming to raise up to $3.0 million (with Board discretion to accept oversubscriptions) to provide the opportunity for the Company’s shareholders to further invest on the same terms as the private

Commenting on the Capital Raising, Nuheara Co-founder and CEO Justin Miller said:

“Following a series of Company achievements over the last 12 months that have demonstrated ongoing market progress and increased sales, Nuheara has experienced a significantly increased level of interest from customers and retailers in its unique hearing solutions. At the same time, market recognition of the need for these hearing solutions has materially increased with the US market now moving to a regulated self-fit solution to open the market to millions of people that previously were not able to access solutions due to affordability reasons.”

“We have an ambitious growth strategy with tremendous once-in-a-generation opportunities in front of us,” continued Miller. “The funds raised provide us with additional capital to execute on our growth plans, and rapidly scale our business globally, particularly in the US.”

 

Executing on strategic priorities

 

When Nuheara last raised capital from shareholders in December 2020, the Company was well positioned to significantly expand sales through the Direct to Consumer (DTC) channel and expanding OEM partnerships.

Since the prior raising, Nuheara has executed on its strategic objectives and achieved a number of important milestones, including:

  • 517% increase in FY21 sales revenue to $10.7 million, with 15,117 IQbuds shipped (net of returns)
  • HP launching Nuheara co-developed Elite Wireless Earbuds at CES 2021
  • Commencing mass production and shipping of HP Elite Wireless Earbuds
  • Receiving FDA registration and Hearing Aid Device listing in the US
  • Appointing key senior talent within the business and the company’s new Innovation Team
  • Launching in 241 Best Buy stores in the US, which offers hearing solutions as a specific product category online and in select retail stores
  • Securing a global supply agreement with Sonova that adds significant potential worldwide Points of Sale to Nuheara’s omni-channel sales strategy
  • Preparing to further scale as a medical device company, with clinical trials of Nuheara’s hearing aids to support entry into the US regulated hearing market
  • Receiving ethical approval to commence a clinical trial with pathway to US FDA submission, ahead of the FDA issuing its landmark proposal for OTC hearing aids in the regulated market

Having put in place key foundational relationships and a strong omni-channel network, Nuheara is well positioned to execute on current and future opportunities in key growth markets, particularly the US, in calendar year 2022.

 

Focus on US Market

 

Following regulatory developments in the US, that Nuheara had been positioning for and building towards over the last seven years, the company is now engaged in ensuring it cements its first mover advantage into OTC hearing aids with clinically tested and FDA approved self-fit hearing aids.

This market comprises approximately 30 million Americans, people with some trouble hearing, who don’t currently use hearing devices.

Recent agreements with Best Buy and Sonova underpin substantially larger retail footprints for Nuheara’s product in the US (in addition to the company’s products being made available for sale via Amazon) providing a “vast opportunity for Nuheara to deepen its brand recognition in advance of future OTC hearing aid products and sales following Nuheara’s hearing solution receiving US FDA approval”.

Nuheara believes that the US hearing market provides a substantial opportunity that warrants significant further focus and investment. This will be the key focus of Nuheara’s activity and expenditure over the next 12 months.

 

Proceeds to underpin growth opportunities


The proceeds from this capital raising will support:

  • Necessary activities and approvals to support 510(k) submission to the FDA for approval of a Class II, self-fitting air conduction, wireless hearing aid
  • Transition of customers to payment terms arising from resurgent traditional retail sales growth through Nuheara’s retail partners, particularly in the US
  • Newly developed range of hearing aid products to underpin Nuheara’s planned expansion into clinically tested and regulatory approved medical devices, particularly in the US
  • Costs of the Offer and working capital

Market Eye acted as corporate advisor to the Capital Raising.

 

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 Stock Exchange (ASX). 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 specialty retailers around the world. The company’s mission is to transform the way people hear by creating smart hearing solutions that are both accessible and affordable.

 

Source: Nuheara


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