Eargo raises capital to compete in the OTC arena
US hearing aid maker, Eargo, has raised $32.3 million to help it compete in the effervescent over-the-counter (OTC) market.
Following the recent completion of Eargo’s common stock rights offering, and the conversion of healthcare investment firm Patient Square’s senior secured convertible notes, the manufacturer now has no debt for borrowed money and is ready to compete for OTC customers.
Patient Square’s involvement now makes it the majority shareholder in Eargo, holding approximately 316.4 million shares, some 76.3% of the Eargo’s outstanding common stock. The gross proceeds from subscriptions in the rights offering, means Eargo raised total net proceeds of approximately $32.3 million, which it plans to use to fund its omni-channel growth strategy.
Christian Gormsen, President and Chief Executive Officer of Eargo, said: “The ownership and support of Patient Square Capital, which we believe is one of the most well-respected investment firms in the health care industry, underscores their commitment to our long-term success and demonstrates their belief in our technology, mission and growth strategy.”
Eargo’s latest generation device, Eargo 6, is an FDA Class II exempt hearing device featuring Sound Adjust technology that automatically optimises the soundscape as the user moves between environments.
Source: Globe Newswire
