High-quality, self-fitting hearing aids accessible and affordable for everyone

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Why invest in Audientes?

Audientes is a Danish technology company specializing in designing, engineering, and selling high-quality, self-fitting hearing aids to the millions of people worldwide who suffer from disabling hearing loss.

Audientes product portfolio consists of the hearing aid, Ven™ by Audientes, which has been for sale in India since March 2022 and had sales surpassing DKK 3 million by the end of Q3, as well as the follow-up product, Companion by Audientes, which will be commercially available in early 2023.

Investment highlights

Commercial breakthrough

Through more than 80 wholesale collaboration partners, Audientes has established a vast distribution network in India, making their hearing aid, Ven, available at more than 500 points of sale across the country. Through its Indian subsidiary, Audientes can access and manage the Indian market, and scale up operations.

Audientes target is to have more than 800 points of sale in India by 2023 and over 1,600 points of sale globally by 2024. The interplay between the retail market and online sales is a central element in Audientes’ distribution of hearing aids to Indian customers. By having a strong presence in the traditional retail market, coupled with selling Ven online, the company’s aim is to become an authority on bridging offline and online retail.

Competitive price

So far, Audientes' primary focus has been on the Indian market, where approx. 75 million people suffer from disabling hearing loss and lack access to high quality hearing aids. Audientes’ hearing aid product, Ven has a similar architecture as other certified quality hearing aids and meets the same industry standards.

High quality combined with a relatively low retail price is an integral part of Audientes' DNA. The maximum recommended retail price for Ven is approx. USD 400 which is between 15-20% of the retail price of a set of the classic quality hearing aids (intermediate category of classic quality hearing aids cost up to approx. USD 3,000 for a set).

Product portfolio

Ven is the first of Audientes’ products to have entered the market. Audientes aims to make affordable hearing loss solutions in attractive designs and across a broad spectrum of form factors and technical specifications. Audientes has commenced the development of its future products, the first of which, Companion by Audientes, an advanced hearable device, will be launched in Europe and USA and other markets in late 2022, and commercially available in early 2023. In late 2024, the company will launch an additional product aimed for over-the-counter (OTC) sales in USA which will increase income sources for Audientes and pave the way for future expansion plans in, for example, Brazil and Chile. In the coming years, Audientes will also continue to invest in the maintenance and support phase of Ven and its future products in the market, to ensure ongoing customer satisfaction and develop sales opportunities from upgrades and accessories.

Solid growth strategy

Audientes’ growth strategy is based on three focus areas: product strategy, distribution strategy, and internationalization strategy. In the product area, Audientes’ current products will be further developed and enhanced, and new products will be developed – culminating in a broad product portfolio of hearing health solutions. In the area of distribution, Audientes aims to combine a strong presence in the traditional retail market with online sales, which is the fastest growing channel for literally all consumer goods today.

Following a planned FDA approval in USA, Audientes will gain access to other markets (the FDA-approval model is similar to how other markets are structuring their approval process), creating a solid base for further sales expansion.

Untapped market potential

Today, 1.5 billion people globally live with some degree of hearing loss. This number is expected to increase to 2.5 billion by 2050. Of the 1.5 billion people living with hearing loss, approximately 430 million suffer from disabling hearing loss (2019). Most of these people reside in low- and middle-income countries with a low number of hearing clinics and audiologists per capita.

It is estimated that 60 percent of people with disabling hearing loss live in Asia. Audientes estimates that over 75 million people in India suffer from disabling hearing loss, and that the Indian market amounts to at least 25 million potential Ven consumers.
Letter from the CEO

We continued our growth in Q2 and Q3 2022, our two first quarters of sales, with revenue surpassing DKK 3 million as we continue to ramp up sales.

Read more

The interest for Ven in India is growing and we have established a strong footing there. Overall operations are progressing very well and market acceptance for Ven has been in line with expectations from previous market trials and partner discussions. We have moved beyond the supply chain challenges experienced earlier in the year, mass producing Ven and importing it to India, where we are now building inventory, so we can meet the expected sales increase in Q4, 2022. 

Further developing retail partnerships 
In June, we also introduced a manual feed pure-tone audiogram for hearing dispensers to the Audientes app. On the advice of our audiologist network in India, this new feature allows dispensers to fit Ven™ based on the values of the pure-tone audiogram as measured by in-clinic puretone audiometers. We also began the next phase of our partnerships with the launch of in-store Ven point-of-sale campaigns with Hearing Wellness Clinic. The goal of these campaigns is to raise the conversion ratio of total traffic of clients to hearing clinics, allowing for maximum exposure of Ven™ to potential customers. We will continue to roll these campaigns out to key partners in India in the coming months. 

Companion by Audientes 
We announced in July the addition of a new product to our portfolio with Companion by Audientes – a situational hearing solution to be launched in Q4 2022, with a focus on the US and thereafter in additional markets globally. Companion is in the advanced hearables category and will extend Audientes’ reach to the consumer electronics market where advanced hearables is one of the fastest growing segments globally. We believe that Companion will provide a valid alternative for those who are not quite ready for the cost and stigma associated with a traditional hearing aid. Companion is built on the existing platform utilized in Ven and will enable Audientes to rapidly enter the US with a smart non-medical consumer electronics device, while we continue to work on products to be registered or approved by the United States FDA.
Steen Thygesen
Steen Thygesen, CEO Audientes

The offer

Audientes conducts a pre-emptive rights issue of a maximum of 9,349,010 units.

Each existing share gives the holder the right to one unit.
One unit comprises of two new shares and one warrant of series TO1.

Audientes is traded on Spotlight Stock Market.

Subscription period

1 Dec - 15 Dec

Subscription price

DKK 1.50 per unit

Issue volume

DKK 14 million
Teckna senast 11 november 2022. Har du teckningsrätter tecknar du senast den 8 november 2022

Documents

Annual report
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Q3 2022
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Prospectus
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Teaser
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Audientes – addressing the global hearing loss challenge!

Today, 1.5 billion live with some degree of hearing loss globally, a number that is expected to grow to 2.5 billion by 2050. Most reside in low- and middle-income countries with a low number of hearing clinics and audiologists per capita.

About Audientes

Audientes is a Danish hearing health company company specializing in smart, self-fitting and affordable hearing aids and advanced hearables. Audientes’ unique hearing aid solution, Ven by Audientes, is available for purchase in the Indian market, online and in retail, and will be introduced to the US over-the-counter market and other markets in the coming years. Companion by Audientes is an advanced hearable consumer electronic product that will be launched in Europe and USA in Q4 2022 with commercial availability in early 2023. 

Audientes’ mission is to help the approximately 500 million people globally suffering from disabling hearing loss who either cannot afford to buy one of the very expensive hearing aids on the market, or who do not currently have access to a solution to their hearing loss.

About Ven

Audientes’ hearing aid solution Ven is a self-fitting, binaural (both ears) hearing aid intended for people with mild- to severe hearing loss in one or both ears. With a built-in, industry gold-standard hearing test and Bluetooth capabilities, Ven combines the sound quality of a high-end digital hearing aid with the next-generation features of a modern Bluetooth headset. 

Ven disrupts the industry by offering hearing aids with no need for repeated visits to an audiologist or hearing clinic for adjustments and fine-tuning. Additionally, Ven offers a product at a competitive price – without sacrificing supreme quality and media consumption features such as audio streaming. 

Audientesbegan selling Ven in India in March 2022 and has surpassed DKK 3 million in revenue by the close of October 2022.

Business model

Audientes business model is based on the sale of products and accessories, which commenced in India in March 2022. Audientes has secured satisfying revenue for the first two quarters of sales, surpassing DKK 3 million in revenue by the end of Q3 2022, primarily from sales of Ven. Additionally, the launch of Companion by Audientes in late 2022 will add to Audientes’ sources of income. The Company focuses on markets where millions of people in the middle class do not have access to an affordable and high-quality hearing aid due to the low density of audiologists and hearing clinics. Audientes will expand through a multitude of channels, such as hearing clinics, pharmacies and optical shops as well as through online sales. Retail sales entities and collaboration with strategic partners will speed up market access and sales execution. This will enable Audientes’ partners to build a new business or expand their current involvement within hearing healthcare.

Commercial partnerships with regional and national distributors are the key components in the sales and distribution strategy for the retail segment. This will ensure Audientes’ presence in professionally staffed sales outlets, where the Company will educate staff about Audientes’ hearing aids, so they can better sell and provide customers service and support. By having a strong presence in the traditional retail market, as well as marketing for sales online, it is the Company’s objective to become an authority on bridging offline and online retail. As at the date of this document, Audientes has more than 80 wholesale collaboration partners in India offering more than 500 points of sales all over India, and is also selling via Amazon and other etailers.

In the intermediate category of classic quality hearing aids, a set costs up to approximately USD 3,000. The maximum recommended retail price for Ven is approximately USD 400 and therefore in the region of 15-20% of the cost of a set of the classic quality hearing aids. A competitive price is subsequently an integral part of the DNA of Audientes and Ven.

FAQ

How do I subscribe for units in Audientes?

Depending on whether you already own shares in Audientes or not, the subscription process differs. Audientes existing shareholders have pre-emptive rights to subscribe for units in relation to existing shareholdings. Those who are registered as shareholders in Audientes on the record date of 28 November 2022 have pre-emptive rights to subscribe for units in the rights issue. For each existing share, one (1) pre-emptive right is obtained. 

The public also has the possibility to subscribe for units in the rights issue.

What is a pre-emptive right?

A pre-emptive right is a right of existing shareholders in a corporation to purchase newly issued units or shares before it is offered to non-existing shareholders.

How do I subscribe with pre-emptive rights?

In order to exercise your pre-emptive rights in the rights issue, you need to log onto your netbank where the pre-emptive rights are held and submit an application stating how many pre-emptive rights you wish to exercise in order to subscribe for new units in the rights issue. This could look different from bank to bank, so if you feel insecure about how to exercise your pre-emptive rights, you should contact the bank where your pre-emptive rights are held, and they should be able to guide you through the process. 

No subscription form is needed when subscribing for new units by exercising pre-emptive rights.

How do I subscribe without pre-emptive rights?

If you are not an existing shareholder in the Audientes, you do not have pre-emptive rights to exercise in the rights issue if you don’t buy pre-emptive rights over the market. In order to subscribe without pre-emptive rights, you will follow one of the below steps, depending on if you have a Danish or Swedish bank:

Danish bank: to subscribe for units without pre-emptive rights, you need to fill out and submit the subscription form to your bank. 

If Nordnet is your bank, you should be able to fill out the subscription online at their offer-page, here.

Swedish bank: to subscribe for units without pre-emptive rights, you need to check with your bank if they are able to submit the subscription to the issuing agent for you, and, follow their instructions on how to conduct the subscription. 

If Nordnet is your bank, you should be able to fill out the subscription online at their offer-page, here.

Can I sell my pre-emptive rights?

Holders of pre-emptive rights who do not wish to exercise their pre-emptive rights to subscribe for New Units may sell their pre-emptive rights on Spotlight Stock Market, and a purchaser may use the acquired pre-emptive rights to subscribe for new units. Holders wishing to sell their pre-emptive rights should instruct their custodian institution or other financial intermediary accordingly.

What is the subscription price?

The subscription price in the rights issue is DKK 1.50 per unit. 

When can I subscribe?

Units must be subscribed during the subscription period starting from 1 December 2022 up to and including 15 December 2022. The public also has the possibility to subscribe for units in the Rights Issue.
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Definitions

Pre-emptive right

A pre-emptive right is a right that gives existing shareholders the right to subscribe for new shares in a rights issue at a predetermined price.

These pre-emptive rights give a preferential right to subscribe for new shares in the company. There may be trading of subscription rights.

Unit

A unit is a combination of financial instruments or types of financial instruments packaged together and sold as one.  For example, shares and warrants packaged together when it is sold.

Warrant

A warrant is a trading instrument where the holder of a warrant receives the right to obtain a share in a company at a certain price on a certain date. This is the warrant owners right – but no obligation.Warrant holders can choose not to exercise their warrants right – and they will lapse with no value. Holders can also sell their warrants on the market util a specific date which is decided individually in all transactions.
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Subscribe for units in Audientes A/S

Depending on whether you already own shares in Audientes A/S or not, the subscription process differs. Audientes A/S existing shareholders have pre-emptive rights to subscribe for units in relation to existing shareholdings. Those who are registered as shareholders in Audientes A/S on the record date of 28 November 2022 have pre-emptive rights to subscribe for units in the rights issue. For each existing share, one (1) pre-emptive right is obtained.

The public also has the possibility to subscribe for units in the rights issue.

Subscribe as a shareholder in Audientes A/S

How to subscribe in Audientes A/S with pre-emptive rights
Subscription with pre-emptive rights
In order to exercise your pre-emptive rights in the rights issue, you need to log onto your netbank where the pre-emptive rights are held and submit an application stating how many pre-emptive rights you wish to exercise in order to subscribe for new units in the rights issue. This could look different from bank to bank, so if you feel insecure about how to exercise your pre-emptive rights, you should contact the bank where your pre-emptive rights are held, and they should be able to guide you through the process.

No subscription form is needed when subscribing for new units by exercising pre-emptive rights.

For each existing share, one (1) pre-emptive right is obtained. One (1) pre-emptive right entitles to subscription of one (1) new unit. Each (1) unit consists of two (2) shares and one (1) warrant of series TO 1.

Subscribe as a new investor in Audientes A/S

How to subscribe in Audientes A/S without pre-emptive rights
Subscription without pre-emptive rights:
If you are not an existing shareholder in the Audientes A/S, you do not have pre-emptive rights to exercise in the rights issue if you don’t buy pre-emptive rights over the market. In order to subscribe without pre-emptive rights, you will follow one of the below steps, depending on if you have a Danish or Swedish bank:

Danish bank
To subscribe for units without pre-emptive rights, you need to fill out and submit the subscription form to your bank.

If Nordnet is your bank, you should be able to fill out the subscription online at their offer-page, here.

Swedish bank
To subscribe for units without pre-emptive rights, you need to check with your bank if they are able to submit the subscription to the issuing agent for you, and, follow their instructions on how to conduct the subscription.

If Nordnet is your bank, you should be able to fill out the subscription online at their offer-page, here.
Subscribe without pre-emptive rights via a subscription form
Danish investors without pre-emptive rights in Audientes A/S who wish to subscribe may do so via a subscription form. Note that it is obligated to send a notification to your bank, which in turn sends the subscription form to the issuing institution (Danske Bank).

Please note, only Danish investors without pre-emptive rights can subscribe via the subscription form.
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