4 May 2020 – Perth, Australia

HIGHLIGHTS

  • Nuheara to undertake a $2.5 Million Share Purchase Plan (SPP)Canaccord Genuity to underwrite $1.5 Million of the SPP
  • The funds raised under the SPP will be utilised to continue to drive the strong recent sales growth of the Company, specifically:
    • Build and extend on the four consecutive quarters of growth in Nuheara’s Direct To Consumer (DTC) online sales through North America, UK and Europe via continued investment in advertising in these regions to support digital campaigns and related marketing initiatives.
    • Increase inventory levels with Nuheara’s contract manufacturer to ensure adequate product levels are maintained to support the continued expansion of DTC sales.
  • Nuheara is further benefiting from its unique online sales process, including proprietary online hearing education, assessments and personalisation, in the current COVID-19 environment with consultations not possible.

Nuheara Limited (ASX: NUH) (Company or Nuheara), is pleased to announce a $2.5 Million capital raise by way of Share Purchase Plan (SPP) to existing eligible shareholders.

Canaccord Genuity (Australia) Limited has underwritten $1.5 Million of the SPP. A summary of the underwriting agreement is attached in Annexure A.

The funds will be used to further drive the four consecutive quarters of growth Nuheara’s Direct to Consumer (DTC) online sales platform has achieved. The Nuheara DTC model is proving to be a critical global alternative as traditional hearing clinics and retailers shutter around the world with the advent of COVID-19 crisis. 76% of all orders from the March 2020 quarter have been placed by international (non-Australian) customers and of those, 68% are from the US.

Figure 1: Historical Nuheara DTC paid orders and ROAS

“The DTC sales momentum that we have worked so hard to establish and grow is now flourishing. We continue to increase sales in a COVID-19 economy where the US and the UK remain our largest markets,” said Nuheara CEO Justin Miller.

“The additional funds will be used to build our global DTC sales through an improving Return on Advertising Spend (ROAS) and to bolster our Inventory of the newly released IQbuds² MAX. With this award-winning new product and our unique ability to globally reach hearing customers in their home, the funds will place us in a stronger financial position to maximise and take advantage of the DTC sales opportunity over the next two to three quarters.

“We are delighted to not only secure Canaccord Genuity’s backing on the capital raise but to also offer our loyal base of supportive shareholders the first right of access to this placement.”

Under the SPP, existing eligible shareholders who were registered as holders of shares in the Company at 5.00pm (Perth time) on Friday 1 May 2020 (Record Date) and whose registered address is in Australia or New Zealand (Eligible Shareholders), can apply for up to $30,000 worth of new shares (with a minimum application of $2,000) in the Company at a price that will be determined by a 20% discount to the 5 day VWAP prior to the issue date. The new shares to be issued under the SPP to eligible shareholders will be issued under ASX Listing Rule 7.2 (exception 5). Any new shares to be issued to the underwriter, Canaccord Genuity (Australia) Limited, will be issued under the Company’s available ASX Listing Rule 7.1 and 7.1A placement capacity.

Indicative SPP Timetable

These dates are indicative only. The Company may vary the dates and times of the Offer, except for the Record Date, without notice. Full details of the SPP and the final timetable will be set out in the SPP offer document which will be dispatched to Eligible Shareholders on or around Wednesday, 6 May 2020.


This announcement has been approved for release by the  Nuheara Managing Director Mr Justin Miller.


Click the icon below to download the Annexure A (ASX Proposed issue of Securities):

 

 

 

Click on the icon below to download the Investor Presentation May 2020:

 

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