6 May 2020


Letter to Shareholders – Share Purchase Plan to Continue Strong Sales Growth.

Dear Nuheara Shareholder,

On behalf of the Directors of Nuheara Limited (Nuheara or Company), we are pleased to offer you the opportunity to participate in a Share Purchase Plan (Plan), which allows eligible shareholders to subscribe for up to $30,000 of new shares in Nuheara without incurring brokerage or other transaction costs. Those shareholders that subscribe for $10,000 or more of new shares, will receive a complimentary set of our new multiple award winning IQbuds² MAX ear buds – a wonderful opportunity to “test drive” your investment in world leading Australian technology.

The Plan aims to raise $2.5 million with $1.5 million of this being underwritten by Canaccord Genuity Australia Limited (Canaccord). The accompanying offer letter provides further details on the Plan and we encourage you to read this in full. In this letter we wanted to summarise why Nuheara is raising more funds now, and why via a Share Purchase Plan.

As you would be aware, Nuheara launched its next generation IQbuds² MAX at the Consumer Electronics Show in January, and we have been delighted and excited with the positive market reception. The IQbuds² MAX have been exclusively sold via our Direct to Consumer (DTC) online channel and have contributed to four consecutive quarters of growth in the channel. Our Return on Advertising Spend (ROAS) has remained above 2x during volatile market conditions. Furthermore, the disruption to traditional sales channels as a result of COVID-19 has demonstrated the strength of our low-cost DTC platform, which has allowed us to remain “open for business”. Investing additional funds in advertising and building inventory levels of IQbuds² MAX should allow us to continue leveraging the success of our DTC platform to drive growth.

Figure 1: Historical Nuheara DTC paid orders and ROAS

COVID-19 has resulted in significant economic disruption and volatility. We are acutely aware of the impact this has had on the Nuheara share price and on capital markets across the globe. Nuheara has already implemented austerity measures to ensure business stability and preserve capital. The Directors believe a Share Purchase Plan, where existing Nuheara shareholders are the first to have the opportunity to support the Company’s growth plans at current share prices, is the most appropriate mechanism under the circumstances.

The Company has worked hard to establish and grow its global DTC sales channel, and we believe investing additional funds in this channel now 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’s backing on the capital raise but to also offer our loyal base of supportive shareholders the first right of access to this new issue of shares. The Directors of the Company who are eligible shareholders intend to participate under the Plan. Should you wish to discuss any information contained in this letter or the Plan, please do not hesitate to contact Nuheara’s Company Secretaries, Susan Hunter or Jean-Marie Rudd on +61 8 6555 9999 or via email at info@nuheara.com.

Yours faithfully




Justin Miller                                                     Hon. Cheryl Edwardes AM

Managing Director                                        Chairman








Click on the following link or the icon below to download the Letter to Shareholders & Invitation to participate in Share Purchase Plan:

Letter to Shareholders – Share Purchase Plan to Continue Strong Sales Growth

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