- Nuheara (NUH) has signed a three-year manufacture and supply agreement with American information technology giant HP
- The first product to be supplied under the agreement will be a HP-branded True Wireless Earbud and charging case
- This product will use Nuheara’s own intellectual property and carry its branding
- Shipment of the product is on schedule to occur from January to March in 2021
- Coinciding with this agreement is the announcement of an $11.5 million placement, with the funds to be used to manufacture products under the HP partnership
- More than 287 million shares will be issued to institutional investors at 4 cents, representing a 17 per cent discount to the 15-day volume-weighted average price
- Nuheara is up a healthy 15.9 per cent on the market with shares trading at 5.1 cents
Nuheara (NUH) has signed a three-year manufacture and supply agreement with American information technology giant HP.
Once the three-year period has expired, the agreement will automatically renew for one-year periods.
The first product to be supplied under the agreement will be a HP-branded True Wireless Earbud and charging case.
This product will use Nuheara’s own intellectual property (IP) and display its branding which will read ‘in collaboration with Nuheara’.
The earbud will enhance the wearer’s ability to be productive, provide a personalised experience, and will be compatible with multiple devices.
Shipment of the product is on schedule to occur from January to March in 2021.
The agreement has no minimum or maximum contract value, however, Nuheara will keep the market updated in its quarterly reports.
“We are delighted to extend our partnership with HP to a long-term supply agreement. This agreement is another pillar in Nuheara’s diversification of revenue streams, building on our growing direct to consumer sales with OEM partnerships,” CEO Justin Miller said.
“It’s a collaboration that has worked very well to date, provides significant commercial advantages to both parties, and I’m particularly pleased that the final products will carry a Nuheara co-brand in recognition of the partnership,” he added.
Placement
Coinciding with this agreement is the announcement of a $11.5 million placement with the funds to be used to manufacture products under the HP agreement.
All up, 287.5 million new fully-paid ordinary shares will be issued to institutional investors at 4 cents each.
This price represents a nine per cent discount to Nuheara’s closing price of 4.4 cents on December 23, and a 17 per cent discount to the 15-day volume-weighted average price of 4.8 cents.
Upon completing the placement, Nuheara will have its strongest-ever cash balance in its history.
Nuheara is up a healthy 15.9 per cent on the market with shares trading at 5.1 cents at 11:25 am AEDT.