Audientes A/S secures market entry in China and decides on DKK 1 million directed issue for strategic investment by Shenzhen Hengtong Partner Company Ltd.

Company announcement no. 21-2023
June 22, 2023

Audientes A/S ("Audientes" or the "Company"), CVR 36047631, and Shenzhen Hengtong Partner Company Ltd. (“Hengtong”) have today entered into an agreement for the distribution and sale of Audientes’ products in China. This agreement means that Companion by Audientes will be available throughout Hengtong’s distribution partners in China, which includes both retailers and online merchants. As part of the collaboration, Hengtong will also invest in Audientes by acquiring a minority stake in Audientes via a cash capital increase in the form of a directed issue. 

 

 

Shenzhen Hengtong Partner Company Ltd. is headquartered in Shenzhen, China, and is a distributor of a number of brands and products within the geriatric healthcare and consumer electronic field. The agreement paves the way for Audientes to enter China with – initially – Audientes’ advanced hearable, Companion by Audientes, through Hengtong’s distribution network. This will be followed by Audientes’ self-fitting hearing aid Ven™ by Audientes when medical device approvals are in place.

 

Hengtong will also collaborate with and support Audientes on the necessary medical device approvals for the Chinese market to secure authorization for the entry of Ven™ by Audientes into China, leveraging its experience in the regulatory field.

 

Entering the Chinese market

Steen Thygesen, CEO, Audientes, comments: “Alongside our focus on the vast Indian hearing health market opportunity, entering the Chinese market has long been an important strategic goal for Audientes. I am therefore very happy to accelerate this already in 2023 through our partnership with Shenzhen Hengtong Partner Company Ltd. The number of people with disabling hearing loss in China exceeds 28 million people, and we will together with our new partner be in a good position to help these and many more with affordable and accessible quality hearing solutions. Hengtong have already devised a solid plan for how Audientes’ hearing health products can leverage its distribution network and experience in both the geriatric healthcare segment as well as the consumer electronics sector, and we look forward to a strong collaboration.”

 

Developing new channels for impacting hearing health in China

Xiaojuan Liu, CEO, Hengtong Partner Company Ltd. comments: “We are very happy to announce this collaboration with Audientes A/S. There is a sizeable and unaddressed market in China for quality over-the-counter hearing solutions such as Companion, as well as affordable hearing aids, such as Ven. We are committed to working with Audientes to secure a successful market entry for them in China and jointly developing this growing market space.”

 

Official estimates state that there are approximately 28 million people in China with disabling hearing loss. This figure represents a significant portion of the population and highlights the substantial demand for hearing healthcare in the country. The global hearing aid industry sells annually only around 18 million hearing aids, highlighting the global need for affordable and accessible hearing solutions such as Audientes’.

 

The Directed issue

The Board of Directors of Audientes has today by use of existing authorizations resolved a capital increase in cash by a directed issue to Hengtong without pre-emptive rights for the existing shareholders of Audientes.

 

Through the directed issue, Hengtong will subscribe for a capital increase in Audientes of approx. DKK 1,000,000. As part of the capital increase Audientes will incur costs of approximately DKK 100,000. The issue proceeds are intended to be used for further development of sales and related activities.

 

The subscription price amounts to DKK 0.2807 per share. The subscription price has been determined based on the volume-weighted average price according to Spotlight Stock Market's official price list for Audientes’ shares during the period from and including 8 June 2023 to and including 21 June 2023 to ensure that the price is market based.

 

Through the directed issue, the number of shares and votes in Audientes increases by 3,562,522 to 39,150,472 and Audientes’ share capital increases by DKK 356,282.20 to DKK 3,915,047.20. The directed issue entails a dilution effect of approximately 9.10 percent in relation to the number of shares in Audientes. The dilution effect is calculated by dividing the number of new shares by the total number of shares in Audientes after registration of the new shares.

 

For further information, please contact:

 

Steen Thygesen, CEO, Audientes A/S	Troels Torp, CFO, Audientes A/S
Phone: ‭+45 77 34 16 80‬‬‬‬	Phone: ‭+45 77 34 16 80‬‬‬‬
Email: [email protected]	Email: [email protected]

 

About Audientes A/S

Audientes A/S is a Danish hearing health 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. Companion by Audientes is an advanced hearable consumer electronics product that is commercially available in Europe and later in 2023 in China.

 

Audientes’ mission is to make high-quality hearing aids and hearables for hearing improvement or hearing enhancement accessible to everyone who needs them globally. Audientes is listed on Spotlight Stock Market Denmark (AUDNTS) and headquartered in Copenhagen, Denmark with a subsidiary in Hyderabad, India.

 

For additional information please refer to the company’s websites, www.audientes.com, www.audientes.eu or www.audientes.in.

 

About Hengtong Partner Group Ltd.

Shenzhen Hengtong Partner Co., Ltd. was established in Shenzhen in 2013. It was founded by a group of people with deep experience in the fields of medicine, finance and marketing. At the beginning of its establishment, the company specialized in the distribution of medical and health products as an agent, with products sold directly to medical institutions and distributed to medical equipment companies in various regions.

 

During the past 10 years Hengtong has gradually expanded its medical products portfolio from imaging and dialysis products to information systems, interventional therapy and rehabilitation products. The company has also expanded its business scope from medical health to artificial intelligence, digital electronics etc. Sales channels include hospitals, medical equipment companies, pharmacy chain stores, digital chain stores, community centers and online platforms. Partners include the world’s top 500 enterprises, world-class retail groups, China's largest Internet communication platform, China Disabled Persons’ Federation etc.

 

For additional information please refer to the company’s website: www.htbnsz.com.

 

This disclosure contains information that Audientes is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 22-06-2023 22:00 CET.