- Nuheara (NUH) will be undertaking a $7.6 million capital raising, comprising an institutional investment, placement and share purchase plan (SPP)
- The money will be applied to support growth opportunities including obtaining US approval for a Class II wireless hearing aid
- The investment is from US-based Healthcare 2030 which has agreed to place $3 million in prepayment for subscription shares
- The placement and share purchase plan will raise $1.62 million and $3 million, respectively, with shares to be priced at 1.6 cents
- Shares in Nuheara were down 15.8 per cent at 1.6 cents
Nuheara (NUH) is undertaking a $7.6 million capital raising, comprising an institutional investment, a placement and a share purchase plan (SPP) for existing investors.
The company plans to use the money to support growth opportunities including obtaining 510(k) approval for a Class II, self-fitting air conduction, wireless hearing aid.
The money will also go towards Nuheara’s newly developed range of hearing aid products to support its planned expansion in the United States.
Co-Founder and CEO Justin Miller said achievements over the last 12 months had 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,” Mr Miller said.
“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.”
US-based Healthcare 2030 has agreed to invest $3 million in Nuheara by making a prepayment for subscription shares.
The subscription funds are expected to be received on or around December 29 with Nuheara to issue the shares within 18 months of the funding.
Under the placement, 101,312,500 new fully-paid ordinary shares will be issued to professional and sophisticated investors at 1.6 cents to raise $1.62 million.
The issue price of 1.6 cents represents a 15.7 per cent discount to Nuheara’s closing price of 1.9 cents on December 22 and an 11.1 per cent discount to the five-day volume-weighted average price.
The placement will settle on December 30 and shares will be allocated on December 31.
Share purchase plan
Nuheara is looking to raise a further $3 million under the share purchase plan and has the ability to accept oversubscription or scale back applications.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares which will be priced the same as the placement of 1.6 cents.
The plan opens on December 31, closes on January 17, and shares will be allocated on January 24.
Shares in Nuheara were down 15.8 per cent on the market and were trading at 1.6 cents at 12:12pm AEDT.