HIGHLIGHTS:
- Nuheara successfully completes $4.5 Million capital raise.
- Existing shareholders contribute $3 Million via Share Purchase Plan (SPP)
- SPP underwriters Canaccord Genuity will contribute $1.5 Million by way of share placement.
- 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.
1 June 2020 – Perth, Australia
Nuheara Limited (ASX: NUH) (Company or Nuheara), is pleased to announce that, with the overwhelming support of shareholders and institutional investors, the Company has successfully completed a capital raising of $4.5 Million (before costs).
Nuheara shareholders, via the Company’s recently announced Share Purchase Plan (SPP), have contributed approximately $3 Million to the raise, which will result in 176,865,999 new fully paid ordinary shares (Shares) being issued at an issue price of $0.017 per Share. All shares subscribed for under the Company’s SPP are expected to be issued Monday, 1 June 2020.
SPP underwriters, Canaccord Genuity (Australia) Limited (Canaccord), have agreed to a $1.5 Million placement of shares (Placement) at $0.017 per Share. This equates to approximately 88.24 Million Shares being issued utilising the Company’s available capacity under ASX listing rules 7.1 and 7.1A and does not require shareholder approval. All shares to be issued under the Placement are expected to be issued on or around Thursday, 4 June 2020.
“We are delighted by the overwhelming support shown to Nuheara by our existing shareholders in subscribing to more than $3 Million in the SPP. This is further complimented by Canaccord’s decision to follow through with their $1.5 Million SPP underwriting commitment by way of a share placement,” said Nuheara CEO Justin Miller.
To exceed our original $2.5 Million SPP target by such a great margin is a very strong signal from the Company’s shareholders that they have confidence in our business and strategy. It also demonstrates that the DTC sales momentum that we have worked so hard to establish and grow, is now proving its potential.”
“As previously communicated, these 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.”
The Directors wish to thank all participating shareholders and investors for their support.
This announcement has been approved for release by the Nuheara Managing Director Mr Justin Miller.
CONTACT
Media and Investor Relations
Shane Murphy, FTI Consulting
Office: +61 8 9321 8533
Email: [email protected]
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 has an office in New York, USA. Nuheara 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, IQbudsTM, 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 in major consumer electronics retailers, professional hearing clinics and optical chains around the world.
