A $21 million hearing healthcare company has gone bust, blaming a fallout with a key supplier for its woes. ASX-listed Nuheara Limited, which specialises in a wireless earbud that allows customers to augment their hearing, announced its move into voluntary administration late on Wednesday afternoon, appointing KPMG administrators to take control of the firm. “The decision was taken by the board to best enable the company to conclude its ongoing strategic review, given the impending maturing of its $2.
5m convertible note,” the company stated. “This convertible note is held by Realtek Semiconducter Corporation and has a maturity date of September 7, 2024. “The company is disappointed that it has been unable to reach a satisfactory commercial agreement with Realtek, regarding the convertible note.
“Separately, the company has yet to receive an executed commercial and royalty agreement, pursuant to the May 17, 2022 memorandum of understanding with Realtek. “The administrators will continue to work with Realtek to execute this agreement, which is considered important to the strategic review process.” Realtek supplies the chips that go into Nuheara’s products.
A KPMG spokesman told NewsWire the administrators were conducting an “urgent assessment” of the business and Nuheara would continue to trade throughout the process. A first creditors’ meeting is booked for August 19. The Perth-based company has 22 employees, including a sales representative in the US.
It.