Nuheara gains $2.5m funding

Wearable tech company Nuheara has secured $2.5 million from a New York-based institutional fund manager to support the commercialisation of its recently released hearing device.

Nuheara has signed a 24-month agreement with the Lind Global Macro Fund, managed by The Lind Partners, to boost its cash and fund the production and marketing of its IQbuds² MAX product, released on January 6.

The company said the hearing buds were redesigned to enhance normal hearing and allow customers to fine-tune their sound environment.

Nuheara chief executive Justin Miller said IQbuds² MAX was the "smart-hearing device" available today.

Under the agreement with The Lind Partners, Nuheara will issue Lind a convertible note with a face value of $3 million.

If the loan is repaid within 180 days, the face value will be reduced to $2.85 million.

Lind has agreed to certain conversion limits and trading restrictions, including no conversions within 120 days below 6 cents per share.

If Lind converts at a price below 2 cents per share, Nuheara will have three days to elect to pay the conversion in cash with a 5 per cent premium instead of issuing shares.

Nuheara will issue approximately 24.3 million options to Lind at an exercisable price of 5 cents, with a four-year expiry date.

Lind will issue 20 million collateral shares that will be credited or returned to Nuheara upon expiration or termination of the funding agreement.

Shares in Nuheara were down 6.1 per cent to trade at 3.1 cents per share, at 4:00pm AEDT.