The Nuheara Ltd (ASX: NUH) share price is back from the Christmas break with a bang.
In morning trade the Nuheara share price is rocketing 23% higher to 5.4 cents.
What did Nuheara announce?
This morning the smart and affordable hearing solutions provider released two big announcements.
The first announcement revealed that Nuheara has signed an agreement to manufacture HP-branded products for American multinational information technology company HP Inc (NYSE: HPQ).
According to the release, the hardware product purchase agreement has a contracted initial term of three years with automatic renewals for successive one-year periods.
This umbrella agreement is designed to manage the design, manufacture, and supply of multiple products throughout the life of the contract. The first Nuheara manufactured product to be supplied under the agreement is a HP branded True Wireless Earbud with charging case.
Utilising Nuheara-owned and developed intellectual property, this product is designed as a premium, compact audio earbud that will enhance the user's ability to be productive, provide a personalised experience and can be used comfortably in dynamic and ever-changing physical environments. The product will also carry a Nuheara co-brand.
Management advised that the product is on schedule to commence mass shipment to HP in the third quarter of FY 2021. Nuheara has already manufactured and supplied HP the validation units of the product. There are no minimum or maximum supply volumes.
CEO Justin Miller commented: "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. With an embedded strategic partner the size of HP, it provides the potential of significant upside to our global reach and scale."
Institutional placement.
In a separate announcement, Nuheara revealed that it has raised $11.5 million before costs through an oversubscribed placement of 287.5 million new shares at an issue price of $0.04 per share.
Net proceeds from the placement will be principally used to fund the acceleration of direct to consumer sales and activities, as well as supporting credit terms for Nuheara's manufacturing and production costs associated with the HP agreement.
