InnerScope Hearing Technologies (OTC: INND) Completes Acquisition of Hearing Assist
As a result of the acquisition, HearingAssist will continue to operate under Hearing Assist Direct, Inc., InnerScope's wholly owned subsidiary.
ROSEVILLE, Calif., Nov. 29, 2021 (GLOBE NEWSWIRE) -- via InvestorWire -- InnerScope Hearing Technologies Inc. (OTC: INND) ("InnerScope"), an emerging and disruptive leader in the Direct-to-Consumer Hearing Technology space, today announced, effective as of Nov. 23, 2021, (the" Date of Close") it has completed the acquisition of Hearing Assist II, LLC. ("HearingAssist"). HearingAssist is an established leader in the direct-to-consumer hearing aid market with over 500,000 hearing aids sold and top-line revenues of more than $72 Million since 2018 and is Walmart's largest hearing aid supplier. HearingAssist has deployed product displays in 757 Walmart stores throughout five states.
The purchase price was a total of $10 million equivalent of InnerScope's restricted shares of common stock subject to a 24-month Leak Out Agreement. The restricted shares are split equally into two different fixed price per share amounts. The first $5 million shares are at a fixed price of $0.0089 per share based on the terms of the Oct. 3, 2021, executed LOI. The second $5 million shares are at a fixed price of $0.17 per share, putting InnerScope's Market Cap exceeding $1 Billion. Additionally, the executed Leak Out Agreement restricts the shareholders to only covert and sell up to 25% of the total amount of the restricted shares at each 6-month interval commencing on the Date of Close after the SEC Rule 144 6-month holding period.
As a result of the acquisition, HearingAssist will continue to operate under Hearing Assist Direct, Inc., InnerScope's wholly owned subsidiary. In addition, InnerScope has retained the same management and operations team that has made the brand so successful.
"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 rapidly accelerate InnerScope's revenue and growth strategy with immediate sales generated from the HearingAssist's hearing product kiosk displays located inside Walmart stores. InnerScope expects to report record sales revenues starting in the fourth quarter of 2021 and continuing quarterly after that. In addition, InnerScope and the HearingAssist management team have already begun an aggressive marketing campaign for the holiday seasons building on HearingAssist's brand messaging as America's No. 1 Affordable Hearing Brand and using HearingAssist's acclaimed national television commercial, which includes a "Free Holiday Special Offer" valued at $149.
Please click the link to view (HearingAssist National Holiday Commercial).
"We are thrilled about the acquisition and the opportunity to work with InnerScope's highly experienced management team," said Nick Naylor, partner of Hearing Assist II, LLC. "This acquisition will allow both companies to provide world-class, differentiated hearing technologies to significantly enhance each customer's hearing experience."
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. Moreover, adding HearingAssist and its management team with their proven track record should continue generating millions of dollars in sales revenues with Walmart in-store displays and Walmart.com and through its online website at https://hearingassist.com/, I'm excited about InnerScope's next chapter, as we continue to drive growth with increased revenues to create long-term value for shareholders."
About InnerScope Hearing Technologies, Inc. (OTC PINK: INND):
InnerScope Hearing Technologies Inc. is a leading Direct-to-Consumer (DTC) manufacturer and distributor of FDA-registered hearing aids, hearing assistive devices, hearing health-related products, and Personal Sound Amplifier Products (PSAPs) ("Hearing Products") dedicated to addressing the global demand for affordable hearing solutions. InnerScope's Hearing Products and its business model break through the persistent barriers that prevent access to effective hearing solutions.
InnerScope's recent Acquisition of iHear Medical Inc., a DTC cloud-based hearing solution provider, gives the Company access to over 40 patents and FDA-registered manufacturing and R&D facility. In addition, InnerScope also acquired HearingAssist, an established leader in the direct-to-consumer hearing aid market with a customer base of over 400,000. These acquisitions, combined with a partnership with Atlazo Inc., a semiconductor innovator for next-generation AI smart devices, will allow InnerScope to take the lead position in the direct-to-consumer hearing solutions market by selling innovated proprietary advanced hearing products through Walmart and other major Big Box retailers.
InnerScope's full line of Hearing Health products is currently available through these multiple retail/wholesale channels: Walmart.com, Amazon.com, Giant Eagle, Hy-Vee, Hartig Drug, Food City, and Cardinal Health dba RGH Enterprises Inc., which provides products to FSAStore.com, HSAStore.com, and WellDeservedHealth.com. Additional major retailers in-store and online launching soon.
For information related to InnerScope Hearing Technologies latest hearing aids and related hearing products, please visit:
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InnerScope Hyperlinks:
HearingAssist National Holiday Commercial
automated self-check hearing screening kiosk
http://gianteagle.myheariq.com
Acquisition of iHear Medical Inc.
Direct-to-Consumer Hearing Products.
InnerScope's Hearing Health Flexible Subscription Plans
Safe Harbor
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended intended to be covered by the "safe harbor" created by those sections. Any statements that are not historical facts contained in this press release are also "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA). Such statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be canceled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing or maintain contractual relationships with vendors and customers, competition, general economic conditions and other factors that are detailed in our periodic reports filed with the Securities and Exchange Commission ("S.E.C."). We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA, Securities Act, and Securities Exchange Act.
Contact:
InnerScope Hearing Technologies, Inc.
Investor Relations
833-788-0506
Investor Relations Agency Contact:
Skyline Corporate Communications Group, LLC
Lisa Gray, Senior Account Manager
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: [email protected]
Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
[email protected]
