Nuheara signs HP agreement, raises $12m

04/01/2021 - 14:00

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Wearable hearing tech company Nuheara has signed a three-year supply agreement with American multinational HP, while also announcing an $11.5 million capital raising.

Nuheara is delighted to extend its partnership with HP, Justin Miller says. Photo: Gabriel Oliveira

Wearable hearing tech company Nuheara has signed a three-year supply agreement with American multinational HP, while also announcing an $11.5 million capital raising.

The deal, announced on December 29, involves the design, manufacture and supply of multiple HP-branded products, with the first being a wireless earbud and charging case.

The product, which will carry a Nuheara co-brand, was developed under the company’s previously announced $3.7 million Scope of Works agreement with HP.

The new agreement has no minimum or maximum contract value, Nuheara said.

Chief executive Justin Miller said the company was delighted to extend its partnership with HP.

“This agreement is another pillar in Nuheara’s diversification of revenue streams, building on our growing direct to consumer sales with OEM partnerships,” he said.

“With an embedded strategic partner the size of HP, it provides the potential of significant upside to our global reach and scale.”

Mr Miller said the supply agreement provided commercial advantages to both parties. The first product is expected to be delivered to HP by March 30.

Nuheara plans to support manufacturing through an oversubscribed $11.5 million share placement priced at 4 cents per share.

The funds raised, which would give Nuheara its strongest ever cash balance, will also be used to accelerate the company's Direct to Consumer sales business and marketing activities.

Canaccord Genuity is acting as sole lead manager to the placement.

Nuheara remains in a trading halt, as requested on December 24.

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