Nuheara in $6m raising

Local tech company Nuheara has tapped investors for $6 million, with the proceeds set to fund an increase in inventory levels of its noise cancelling earbuds.

Nuheara, which won the 2017 Business News Rising Stars award, said it had issued 63 million shares at 9.5 cents each, with APP Securities acting as lead manager and bookrunner to the placement.

The company will use the funds to increase stock of its IQbuds Boost along with increased spending on sales and marketing for its products.

“Today’s equity raising is validation of Nuheara’s recent successful launch of our IQbuds BOOST product, where due to strong initial consumer and retail demand, we have now had to increase our June production levels,” managing director Justin Miller said.

“Positively, in light of the popularity of Boost, as well as our continued geographical retail expansion into new major markets such as Japan, Nuheara has now needed to add more financial resources.”

Nuheara said that existing shareholder Farjoy has cornerstoned the equity raising.

Shares in Nuheara were up 4.76 per cent at 11 cents each today.