• $2.5 million working capital and production funding by way of a 24-month convertible security with The Lind Partners.
  • Nuheara has option to buy back the convertible security at face value at any time without penalty.
  • Conversion restricted for 120 days after closing.

24 January 2020 – Perth, Australia

Nuheara Limited (ASX: NUH) (“Company” or “Nuheara“), transforming the way people hear by creating smart hearing solutions that are accessible and affordable, is pleased to announce that it has executed an agreement for a 24-month $2.5 million funding (Funding Agreement) with the Lind Global Macro Fund, LP, an entity managed by The Lind Partners (together Lind), a New York-based institutional fund manager.

The funding will be provided as a secured convertible note with a 24-month term, the proceeds of which will be used, along with Nuheara’s current cash, to fund the mass production and marketing of the recently released IQbuds2 MAX and working capital requirements.

The Funding Agreement includes provisions that allow for conversion of securities outstanding to Lind into fully paid ordinary shares in the capital of the Company, optional cash payments by the Company or early repayment, without penalty and subject to Lind’s buy back conversion rights for up to 33% of the outstanding face value. A lock-up provision restricts conversion into shares for 120 days after the closing date.

Commenting on the Funding Agreement, Nuheara’s Managing Director, Justin Miller stated, “The current financing from Lind will improve our balance sheet and allow us to reallocate operating cash flow to facilitate mass production of the Company’s new IQbuds2 MAX product, which was recently launched at the Consumer Electronic Show (CES) “Unveiled” event in Las Vegas on 5 January, and received excellent feedback. Consumers can currently pre-order this new product via our website now.”

Key Aspects of the Funding Agreement

Lind will invest $2.5 million into Nuheara who will issue a secured redeemable convertible security with a face value of $3.0 million. Nuheara has the right to redeem at any time without penalty, which, if repaid within 180 days, the face value will be reduced to $2.85 million.

Lind has agreed to certain conversion limits and trading restrictions, including no conversions within the first 120 days below $0.06 per share. If Lind converts at a price below $0.02, instead of issuing shares, Nuheara will have three business days to elect to pay that conversion in cash plus a 5% premium.

The conversion price will be:

  • $0.06 for 120 days after closing;
  • After 120 days, the lessor of $0.06; or 90% of the average of the five lowest daily VWAPs during the 20-trading days prior to conversion.

As part of the consideration payable for this Funding Agreement, the Company will issue 24,264,706 options to Lind with an exercise price of $0.05 (47% premium over the current share price) with an expiry date 4 years from issue. Security will be provided to Lind by way of the issue of 20 million collateral shares that will be credited or returned to the Company upon expiration or termination of the Funding Agreement.

Funding of $2.5 million is expected within seven business days.


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


CONTACTS

Media and Investor Relations: Shane Murphy, FTI Consulting
Office: +61 8 9321 8533
Email: shane.murphy@fticonsulting.com
Mobile: +61 420 945 291

ABOUT NUHEARA

Nuheara is a global leader in smart personal hearing devices which change people’s lives by enhancing the power to hear. Nuheara has developed  proprietary and multi-functional intelligent  hearing technology that augments a person’s hearing and facilitates cable free connection to smart devices. Nuheara is based 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. Nuheara products are now sold online and in major consumer electronics retailers, professional hearing clinics and optical chains 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.

Learn more about Nuheara: www.nuheara.com

ABOUT THE LIND PARTNERS

The Lind Partners is an institutional fund manager and leading provider of growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind targets high growth sectors such as technology, biotech, clean-tech, mining and oil & gas. Founded in 2011, Lind has completed over 70 direct investments for more than $850 million in total value and has an established reputation as a flexible and supportive capital partner to investee companies. For more information, please visit http://www.thelindpartners.com.

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