Wearables play Nuheara sold out its first run of hearing-assisted earbuds in six weeks
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Wearables play Nuheara says its first run of 2500 hearing-enhanced earbuds have sold out in six weeks.
Perth-based Nuheara (ASX:NUH) makes “IQbud” earbuds as well as an enhanced version called “IQbuds Boost” that’s pitched as a hearing assistance device for people suffering mild hearing loss.
The stock rocketed in March when the company won a government subsidy on the device.
Now the headphone maker (ASX:NUH) says its first run of IQBuds Boost — whcih sell for $US499 — sold out in the first six weeks.
Nuheara will draw on a $6 million capital raise completed in June to make more of the IQbuds Boost products.
The average user of Boost headphones is 58 years old.
Chief executive Justin Miller saying “we are now certain that Nuheara has effectively created a product to service the significant gap in the market for hearing solutions targeted at mild to moderate hearing loss”.
In the first week of June the company secured $6 million from institutional investors through the issuing of 62 million shares at 9.5c each.
Nuheara hit the million dollar cash sales mark in the March quarter and burned $1.1 million.
The business had $4.8 million on hand at the end of March, but it appears manufacturing its tech takes a significant chunk of dough – estimated cash outflows for the June quarter were $4.4 million, with $1.8 million going towards actually getting the inventory sorted.
Nuheara said in March it would cost $1 million to complete manufacturing and production, including future inventory buy up, and said it planned to spend around $800,000 in the three months to June on trade mark registrations and costs.
Despite the stock’s rally in March, the shares are at pretty much the same place as 12 months ago – sitting at 9.2c on Thursday morning, compared with 9.3c last year.