AUDEARA LIMITED — Capital/Financing Update 2022

Nov 21, 2022

Nov 22, 2022

HIGHLIGHTS:

• A$2.8m placement to strategic audiology industry professional Mr David Lin the CEO of Clinico Inc at $0.10 per share

• Proceeds from the placement to support product and geographic expansion

• ▪ Strengthened balance sheet

Audeara Limited (ASX: AUA) (‘Audeara’ or ‘the Company’) is pleased to announce that it has received a binding commitment for an A$2.8m placement with a strategic investor, Mr. David Lin the CEO of Clinico Inc. The Company has agreed to issue 28,000,000 shares at a price of $0.10 per share which is subject to shareholder approval at a General Meeting of the Company to be held on or about 23 December, 2022.

The placement is to be made through Mr Lin’s investment vehicle, Fortune Pioneer International Holdings Co Limited, a wholly owned and controlled entity of Mr Lin. The investor has agreed to enter into a voluntary escrow agreement pursuant to which the Shares will be subject to escrow for a period of twelve months following their issue.

The placement price represents a 23% premium to market closing price Friday 17th November. The Notice of Meeting documents seeking approval for the placement, will be dispatched to shareholders this week.

If approved by shareholders at the General Meeting and the Shares are issued, the investor will hold an interest in approximately 19.5% of the Company.

Audeara’s Managing Director Dr. James Fielding, commented:

“The Company welcomes Mr David Lin, the CEO of Clinico Inc as our newest strategic investor. Mr Lin has extensive experience in the health technology sector with business interests in both ophthalmology and audiology. As an audiologist trained in Australia, Mr Lin has gone on to build the largest Audiology clinic group in Taiwan with more than 140 direct owned clinics through a greenfield and acquisition strategy, including the Bay Audio group in Taiwan. Audeara has previously announced a working relationship with Clinico in Taiwan and looks forward to the strengthening of this relationship to expand business opportunities in Asia.”

Clinico CEO Mr. David Lin, commented:

“I am very excited to have this opportunity to further cooperate with Audeara. Audeara has a very strong and passionate team that has proven they can deliver impressive hearing technology in the audiology field and capture market share. The development of hearable products for the users who need to increase their living experience is an exciting opportunity. We can see that the current sales in the Australian market have been continuing to grow year by year with a large upside in a number of government initiatives. On international expansion, Audeara has cooperated with the largest retailer in the entire European market, and the United States also continues to deploy. I believe we can leverage our position to help Audeara to explore the Asian market. We are passionate about our customers leaving with quality hearing solutions and see a growing need that we can address.”

Use of funds

Funds from this Placement will be used to increase working capital, continue R&D projects and purchase inventory for increased sales demand. The significantly strengthened capital position will support expected growth from initial stocking of new sales channels, primarily through Europe and increased sell through in established Australian and Taiwanese hearing health channels.

Audeara’s R&D team will be well positioned to continue development of hearing health devices with new product development aligned with current audiology partners and focussed on broadening Audeara’s offering to end users. Leveraging strategic hearing health industry partners will ensure that new products have a clear path to market.

This announcement has been authorised by the board of Audeara Limited.

For more information please visit, audeara.com.

		CORPORATE & MEDIA ENQUIRIES	CORPORATE & MEDIA ENQUIRIES	INVESTOR ENQUIRIES	INVESTOR ENQUIRIES
			Dr James Fielding		Stephen BuckleyCompany Secretarystephen.buckley@audeara.com
			Managing Director and Chief Executive Officer
			james.fielding@audeara.com
			+61 422 292 678

ABOUT AUDEARA

Audeara makes perfect sound, always.

Audeara Ltd (ASX: AUA) is a hearing health technology company that delivers high-quality personalised audio to listeners via Bluetooth headphones.

A proprietary personalisation algorithm calibrates the headphones for an individual’s unique hearing profile. This provides crystal clear sound quality for video conferencing and telephone calls and using mainstream applications like watching television, listening to music and gaming.

Categorised as an assistive listening device (ALD), Audeara's unique technology emphasises better, not louder sound. This means listeners can have a safer, high-quality listening experience that protects the hearing they have.

The Company sells its products through distributors and resellers in Australia, North America, Europe and Taiwan and via e-commerce channels.