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- Hearing technology company Nuheara (NUH) has executed an agreement for $2.5 million in funding with Lind Global Macro Fund
- Funding will be provided as a secured convertible note with proceeds to be used for the production and marketing of Nuheara’s IQbuds2 MAX
- Nuheara has the option to buy back the convertible security at face value without any penalty
- In mid-morning trade Nuheara is down 3.03 per cent with shares trading for 3.2 cents apiece
Hearing technology company Nuheara (NUH) has executed an agreement for a 24-month $2.5 million funding with Lind Global Macro Fund.
Funding will be provided as a secured convertible note with proceeds to be used, along with Nuheara’s current cash, to fund the mass production and marketing of the recently released IQbuds2 MAX and working capital requirements.
Nuheara’s IQBuds2 MAX feature hybrid active noise cancellation as well as unique features for personalising and enhancing the wearer’s soundscape.
Key features include situational sound, sonic accuracy, speech in noise control, and advanced digital signal processing.
This funding agreement includes provisions that allow for the conversion of securities outstanding to Lind into fully paid ordinary shares in Nuheara capital.
A lock-up provision restricts conversion into shares for 120 days after the closing date.
“The current financing from Lind will improve our balance sheet and allow us to relocate operating cash flow to facilitate mass production of the company’s new IQbuds2 Max product, which was recently launched at the consumer electronic show,” Nuheara Managing Director Justin Miller commented.
Lind will invest $2.5 million into Nuheara who will issue a secured redeemable convertible security with a face value of $3 million.
Nuheara has the right to redeem at anytime without penalty which, if repaid within 180 days, will reduce the face value to $2.85 million.
Lind has agreed to certain limits and trading restrictions, including no conversions within the first 120 days below $0.06 per share.
If Lind converts at a price below $0.02, Nuheara will have three days to elect to pay that conversion in cash with a five per cent premium instead of issuing shares.
As part of the consideration payable for this funding agreement, Nuheara will issue 24,264,706 options to Lind with an exercise price of $0.05 and an expiry date four years from issue.
Security will be provided to Lind by way of issue of 20 million collateral shares that will be credited or returned to the company upon expiration or termination of the funding agreement.
In mid-morning trade, Nuheara is down 3.03 per cent with shares trading for 3.2 cents at 11:45 am AEDT.
