Nuheara Limited (ASX:NUH) engaged in developing affordable and smart hearing solution, witnessed a significant increase in share price in last year. A jump of ~80% was observed in the share prices as on 14 May 2021, closing the day’s trade at A$0.043.
Summary of the events which led to the increase in investments
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Three-year agreement was signed between Nuheara and HP
Nuheara Limited (ASX: NUH) showed a drastic increase in their share prices in August 2020 after the partnership announcement between HP and Nuheara. In effect, the NUH stock was trading at $0.06 with a market capitalization between $70 to 80 million.
At the end of December 2020, a three-year agreement was signed between Nuheara and HP with placement of $11.5 million. With the agreement, Nuheara was able to achieve a strong cash balance. During the morning trade on 29th December 2020, the share prices of Nuheara Limited were escalating 23% higher. Moreover, the share prices showed a rise in closing price from 0.044 to 0.048 on 29th December 2020.
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After the deal with HP, the balance sheet of the company strengthened. With the placement of $11.5 million, the outstanding obligations of the company were removed. The DTC sales and manufacturing were supported with the money raised. The company achieved a strong position as it became debt-free.
IQbuds2 (PRO) product Launch
In January 2020, Justin Miller (CEO of Nuheara) announced the launch of IQbuds2 MAX, which is an innovative, next-generation audio wearable. During COVID – 19 crisis period, Justin Miller remarked that the company has strong inventory along with significant capital. The announcement and strong financial position maintained the interest of the investors in NUH.
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On 9th March 2020, Nuheara announced that the IQbuds2 (PRO) product registration with US FDA has been revised. As a result, the share prices of NUH soared by 13% when the market opened. The closing share price remained 2% higher from the previous day’s closing price. Furthermore, the share prices rocketed 95% in comparison to the last 12 months’ share prices with a market capitalization of $75.8 million.
Elite Wireless Earbuds Product launch
NUH share prices increased by 3.92% during the early trading on 12th January 2021 as Nuheara released the first product (Elite Wireless Earbuds) under the three – year agreement with HP.
Another jump of 6% was observed in the share prices with a market capitalization of $86.1 million on 21st April 2021 in early trading, after the update provided by the company. Nuheara released the information that mass production of Elite Wireless Earbuds has begun and it will reach customers by May 2021.
Another jump was observed on 10 May 2021, when Nuheara announced the shipment of Elite Wireless Buds through ASX platform. During the trading, share prices jumped from 0.043 AUD to 0.046 AUD during the early reading hours.