ASX-listed Nuheara announced on Thursday that it had raised $9 million of new capital through a share issue.
The institutional placement will see 97.8 million new ordinary shares go out on Tuesday to investors at a price of 9.2 cents. The stock was at 9.3 cents at the close of trading on Thursday.
“In 18 months, Nuheara has delivered its first wearable prototype in January 2016, to now selling its IQbuds — with acclaimed reviews — in major retail chains around the world,” said Nuheara co-founder and chief executive Justin Miller.
“The placement will fund our aggressive global sales growth but also, lays the foundation for the future development of the company through new research and product development. In the short term, we are now well placed to pursue both.”
The startup’s flagship IQbuds are earbuds that not only project music and telephone calls but also helps the wearer hear more clearly in noisy environments like pubs, by reducing background noise.
The company stated to the ASX that the new funds would be used to develop new products that will go beyond the consumer market and reach into health tech, and get the IQbuds into more retail stores.
Nuheara reverse listed on the ASX last year without a product, then revealed IQbuds at the CES trade show in Las Vegas in January this year. By the end of May, the company had shipped 6000 IQbuds at a average sale pricve of $307.
Last week, Nuheara announced US retail chain Target had taken up IQbuds to sell on its online store. US electronics chain Best Buys, with a network of 210 physical stores, is also stocking the Australian product and the startup has distribution deals in the United Kingdom as well.