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Nextech AR Solutions Corp
Symbol NTAR
Shares Issued 63,427,300
Close 2020-06-18 C$ 2.21
Recent Sedar Documents

Nextech AR Solutions closes $3.2M private placement

2020-06-19 08:34 ET - News Release

Mr. Evan Gappelberg reports

NEXTECH CLOSES ON $3,200,000 NON-BROKERED PRIVATE PLACEMENT

Nextech AR Solutions Corp. has closed a private placement of 1,528,036 units priced at the market price of $2.10 per unit for gross proceeds of $3,208,875. Each unit consists of one common share and one-half share purchase warrant exercisable at $3 per share for a period of two years and subject to acceleration provisions. The use of proceeds includes: growing sales and engineering teams, pursuing strategic merger and acquisition opportunities, and for general working capital purposes.

Kashif Malik, chief financial officer of Nextech, commented, "This financing provides the company with a healthy cash and inventory position of over $7.5-million -- its highest ever -- providing a solid foundation to support the company's rapid growth plans."

Evan Gappelberg, chief executive officer of Nextech, comments: "We are very fortunate to have supportive investors, with a long-term strategic outlook, who continue to support our growth in 2020 and beyond. In this round we had a total of nine institutional, family office and high-net-worth investors participate; most participated in each of our prior financing rounds, at 60 cents, 75 cents and now at $2.10, I personally thank them for their support. With the April 30 acquisition of virtual events platform Jolokia, we have grown our pipeline of opportunities very quickly with $300,000 in new closed deals in just the past six weeks. On top of this, we now have a potential pipeline worth another plus $1-million, as Nextech's AR-enhanced virtual events platform is being enthusiastically embraced and is gaining rapid traction with global enterprise, and government customers. As witnessed by the growth of Zoom (ZM), we are right smack in the middle of arguably the fastest growing business on the planet: video conferences.

"As demand is surging at an ever faster pace we are continuing to grow our sales and engineering teams, with four new hires in the past 30 days alone, bringing our talent base to over 50 people and we don't see this trend slowing. We are also actively looking for strategic acquisitions which sometimes requires cash plus stock, making this capital raise both timely and strategic for our shareholders."

A finder's fee equal to 8 per cent cash and 8 per cent broker warrants will be payable upon $2,268,873 in respect to the offering. The broker warrants are exercisable at $2.10 per share for a period of two years and all securities issued are subject to a four-month hold period from the date of issuance. The company has also issued one million three-year incentive stock options to its employees priced at $2.20.

About Nextech AR Solutions Corp.

Nextech is one of the leaders in the rapidly growing AR industry, estimated to hit $120-billion by 2022, according to Statista.

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