Nuheara raises $5m

Nuheara has tapped investors for $5 million to primarily fund an increase in inventory levels and marketing for its IQbuds Boost hearing bud, after winning a contract to supply the UK’s National Health Service with the product.

The funds will also go towards the manufacture and development of new products, including IQstream TV and IQbuds Max.

Under the placement, the company issued shares at 7.5 cents each, representing a 4 per cent discount on its last closing price.

APP Securities and Patersons Securities acted as joint lead managers for the placement.

In a statement to the ASX, Nuheara said the raising was oversubscribed.

“Nuheara is delighted to announce that the equity raising was cornerstoned by many of the company’s existing institutional shareholders including Nuheara’s largest shareholder Farjoy Pty Limited,” the company said.

Last week, Nuheara secured a two-year contract set to commence in April 2019, to supply the NHS with its IQbuds Boost for adults and children in the mild to moderate hearing loss category.

Nuheara estimates that the NHS will spend $61 million on products within this hearing loss category during the first year of their contract, of which the Northbridge-based company will be eligible to receive a portion.

Shares in Nuheara were up 9 per cent to trade at 8.5 cents each at 3pm AEDT.