- InnerScope Hearing Technologies recently announced the purchase of HearingAssist, a leader withing the B2C hearing aid market and Walmart’s largest dedicated hearing aid suppliers
- The acquisition will comprise of gross consideration of $10 million, which will be paid by InnerScope in two tranches of $5 million worth of restricted shares
- InnerScope will now look to gain market share, a result of both – HearingAssist’s 757 sales sites within Walmart stores and its online e-commerce presence
- InnerScope have recently launched their product range on FSAstore.com, HSAstore.com, and WellDeservedHealth.com as well as their own e-commerce site, iHeardirect.com
InnerScope Hearing Technologies (OTC: INND), a manufacturer and distributer/retailer of DTC, FDA registered, Bluetooth app-controlled hearing aids and personal sound amplifier products (“PSAPs”), as well as various hearing-related products, has announced the recent acquisition of Hearing Assist II, LLC (“HearingAssist”). HearingAssist, a long established leader in the direct-to-consumer hearing aid market, has sold over 500,000 hearing aids since 2008 and has generated upwards of $72 million in top-line revenues since 2018, transforming into Walmart’s largest hearing aid supplier in the process (https://ibn.fm/kn7pd).
InnerScope Hearing Technologies will acquire HearingAssist for a gross consideration of $10 million, comprised of InnerScope restricted shares, subject to a 24-month leak out agreement. The restricted shares will be comprised of two distinct tranches – the first tranche of $5 million will be issued at a fixed price of $0.0089 per share while the second tranche of $5 million will be priced at $0.17 per share, valuing InnerScope at over $1 billion. Moreover, the leak out agreement will restrict shareholders to converting and selling a maximum of 25% of the awarded shares in any given 6-month interval, commencing from the closing day of the acquisition.
“The HearingAssist team is very excited about this opportunity to join forces with InnerScope to become the number one global leader in the direct-to-consumer hearing aid market,” said Floyd Kuriloff, founder of Hearing Assist II LLC. “Combining the talents and experience of HearingAssist, with our deep marketing and distribution experience and InnerScope, with its decades of proven track record of retail hearing aid sales and hearing aid R&D manufacturing, will create a powerful disruptive company in the global hearing device market.”
The acquisition of HearingAssist will enable InnerScope to accelerate the company’s revenue and growth strategy, as it consolidates the sales generated by HearingAssist’s hearing product kiosks, which are currently in place across 757 Walmart stores in five states. Following the acquisition, InnerScope and HearingAssist have also revealed plans to release a joint marketing campaign, seeking to build upon HearingAssist’s brand message as ‘America’s No. 1 Affordable Hearing Brand.’
Matthew Moore, president and CEO of InnerScope, stated: “Today is a tremendous milestone for InnerScope. I’m delighted to welcome the HearingAssist team, who share our passion for providing convenient and affordable hearing products for the tens of millions of Americans who suffer from hearing loss. The HearingAssist acquisition is another meaningful step in advancing our strategy to grow as a leader and innovator in the direct-to-consumer hearing aid market.”
InnerScope have long distinguished themselves through their mission to provide reliable and inexpensive hearing aids to the approximately 28.8 million Americans who could benefit from wearing hearing aids today – with the Company rolling out a series of free, self-check hearing screening kiosks at a string of national pharmacy chains, big box retailers and grocery chains across the country. The kiosks, which are equipped with the world’s first ‘hearing triage’ artificial intelligence pattern recognition software, have a unique ability to classify both, the degree of hearing loss as well as the type of loss suffered by each patient.
Customers requiring hearing devices will be able to purchase the recommended product at InnerScope Hearing Technologies’ dedicated e-commerce website, www.iHeardirect.com. In addition to the Company’s kiosk roll-out, InnerScope has also expressed its intention to broaden its distribution network, a move which will see the company roll-out their product portfolio to the over 70 million customers currently enrolled inflexible spending accounts (“FSA”), health saving accounts (“HSA”), and employers’ health incentive programs, all of whom will now be able to purchase the hearing devices through the likes of the FSAstore.com, HSAstore.com, and WellDeservedHealth.com.
The acquisition of HearingAssist will transform InnerScope into one of the United States’ largest hearing aid vendors, a move which will allow the company to gain incremental share within the burgeoning global hearing aid market – a sector which is forecast to swell to $11.02 billion annually by 2028, representing an earnings growth CAGR of 7.4% over the 2021-2028 interim.
NOTE TO INVESTORS: The latest news and updates relating to INND are available in the company’s newsroom at https://ibn.fm/INND
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