Nuheara Ltd (ASX:NUH) (OTCMKTS:NUHRF) has completed a placement to institutional investors raising A$11.5 million and has closed-out a convertible security funding agreement with The Lind Partners.
After completing the placement, Nuheara issued a buy-back notice to Lind for the remaining convertible note balance of A$850,000 and this removes all outstanding company obligation to The Lind Partners
Under the terms of the agreement, Lind elected to convert the buyback into shares at an issue price of A$0.04 per share, which is the same issue price as the placement.
This represents 90% of the five lowest daily volume-weighted average prices (VWAPs) in the 20 trading days before the buy-back notice being served.
Over the course of the agreement, the average conversion price was A$0.033, which is on par with the market price at the contract’s inception in January 2020.
Capital to support mass production
Nuheara CFO Jean-Marie Rudd said: “The CN Agreement with Lind has been a productive initiative for both companies that provided capital to support the initial mass production and marketing of IQbuds2 MAX.
“Lind’s subsequent election to convert the entire funding amount, including collateral security, into shares, has demonstrated confidence in Nuheara’s ability to deliver growth for its shareholders.”
Strong position to drive DTC sales
Following completion of the placement and security conversion, Nuheara is now debt-free and in a very strong position to continue driving its Direct to Consumer (DTC) sales growth and to support its expanding OEM partnerships, which now includes HP Inc.
Last year, the company released its third generation IQbuds² MAX, wireless earbuds that allow consumers to augment their hearing.
Nuheara products are sold Direct to Consumer and in major consumer electronics retailers, professional hearing clinics, pharmacies and optical chains around the world.