- Nuheara (NUH) will raise $2.5 million through a share purchase plan to existing eligible shareholders
- Canaccord Genuity’s Australian branch has also backed the raise by underwriting $1.5 million of the share purchase plan
- The money raised will continue to drive the strong recent sales growth the company has achieved through its direct to consumer online sales
- The funds will also help Nuheara to increase the inventory of its IQbuds2 MAX to ensure there’s enough stock for future orders
- This hearing technology boasts advanced, noise-cancelling features that are personalised to the wearer
- Nuheara is down 6.25 per cent this morning, with shares trading for 1.5 cents each
Nuheara (NUH) will raise $2.5 million through a share purchase plan to existing eligible shareholders.
The money from the placement will be used to extend the four consecutive quarters of growth (ending in March 2020) achieved by Nuheara’s Direct-to-Consumer (DTC) online sales platform.
The Nuheara DTC model is proving to be a crucial alternative, as traditional hearing clinics and retailers around the world have closed due to COVID-19.
Customers outside Australia have placed 76 per cent of all orders from the March 2020 quarter, and of those, 68 per cent are from the U.S.
“We continue to increase sales in a COVID-19 economy, where the U.S. and the U.K. remain our largest markets,” CEO Justin Miller said.
“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,” Justin added.
The IQbuds2 MAX hearing technology features active noise cancellation, situational sound, sonic accuracy, speech in noise control, and advanced digital signal processing, as well as other advanced features personalised to the wearer.
“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,” Justin stated.
In early April, Nuheara announced the new technology had already received a number of global certifications. These include an FCC Mark in the United States, CE Mark in the United Kingdom and Europe, IC Mark in Canada, and RCM Mark in Australia.
Under the raise, Canaccord Genuity’s Australian branch has underwritten $1.5 million in the share purchase plan.
Shareholders can apply for up to $30,000 worth of new shares if they choose to invest a minimum of $2000 in the company. The price per share is yet to be set, but it will be determined by calculating a 20 per cent discount to the five-day volume-weighted asset price (VWAP) prior to the issue date.
Nuheara is down 6.25 per cent this morning, with shares trading for 1.5 cents each at 10:22 am AEST.