Sonomax Hearing Healthcare Inc. (SHH:TSX Venture Exchange) announces objective, scientific proof of the company's ability to develop a technology to produce an off-the-shelf, self-fitting, custom earpiece.
The company recently completed scientific proofs of concepts and has now graduated to, and has successfully completed Phase I of, a five phase development program whose objective is to have a self-fit custom earpiece available to the retail public in limited quantities this coming winter and full rollout to the consumer market scheduled for spring 2010.
The V4 (its working title) is expected to be a one-of-a-kind product - an instant-self-fit, off-the-peg, custom earpiece that offers absolute comfort, never falls out, and delivers crystal clear sound quality for music, Bluetooth(TM) headsets, and other in-ear apps. The product will be mass producible at a fraction of current cost, which will make it extremely competitive in the high-end earpiece market.
For market size context, credible studies project sales of 945 million music playing devices in 2010 with aftermarket earphones and Bluetooth(TM) headsets tracking at 45%-70%.
Phase I successfully delivered a V4 3D prototype model/speaker housing combined with modified/fitted V3 silicone earpiece. This proof-of-concept provides the feel/sound of the final product.
As a matter of corporate policy, Sonomax will announce success or failure of each of the remaining four milestones. The next milestone, proof-of-performance of a delivery mechanism that inflates a V3 earplug as per fit function criteria, is scheduled for August 31, 2009.
Private Placement
To contribute to working capital requirements in the course of implementing its program to develop and commercialize self-fit custom expansion earpieces, the company announces that it has received conditional regulatory approval to proceed with a private placement of up to 50,000,000 units at a price of $0.02 per unit, for maximum gross proceeds to Sonomax of $1 million.
Each unit will consist of one common share and one common share purchase warrant. Each warrant comprised in the units will entitle the holder to purchase one additional common share of Sonomax at a price of $0.05 for one year following the closing date and at a price of $0.10 for a period of four years thereafter.
The private placement will be effected pursuant to prospectus exemptions under applicable securities legislation and is expected to close on or before September 8th 2009. The private placement is subject to receipt of all necessary corporate and regulatory approvals, including that of the TSX Venture Exchange. The securities issued in the private placement will be subject to a four-month "hold period" under applicable securities legislation and the policies of the TSX Venture Exchange.
There are currently 162,412,953 common shares of Sonomax issued and outstanding.
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