Mr. Evan Gappelberg reports
NEXTECH AR PRICES PREVIOUSLY ANNOUNCED PROSPECTUS OFFERING
Nextech AR Solutions Corp.'s offering, previously announced on July 23, 2020, will be for an offering size of up to $15-million. The offering will be conducted on an agency basis for the issuance of up to 2,307,692 units of the company at a price of $6.50 per unit. The offering is being led by Mackie Research Capital Corp. as sole agent and sole bookrunner.
Each unit shall comprise one common share in the capital of the company and one-half of one common share purchase warrant of the company. Each warrant is exercisable into one common share at a price of $8 for a period of 24 months following the closing of the offering, subject to an accelerated expiry if the volume-weighted average price of the common shares on the Canadian Securities Exchange (or such other stock exchange where the majority of the trading volume occurs) exceeds $11 for 15 consecutive trading days. At any time after such an occurrence, the company may give written notice (via news release) to the holders of the warrants that the warrants will expire at 4 p.m. PT on the 30th day following the giving of notice unless exercised by the holders prior to such date.
The company has granted the agent an option to cover overallotments and for market stabilization purposes, exercisable in whole or in part at the sole discretion of the agent, at any time up to 30 days from the closing of the offering, to increase the size of the offering by up to 15 per cent of the number of units (and/or the components thereof) sold pursuant to the offering, on the same terms and conditions of the offering.
The net proceeds raised under the offering will be used for sales and marketing expenses, research and development, working capital, potential strategic acquisitions, and general corporate purposes.
The closing of the offering is currently expected to be on or about the week of Aug. 17, 2020, and is subject to certain conditions including, but not limited to, the execution of an agency agreement and the receipt of all necessary regulatory approvals including the approval of the exchange.
The company will use commercially reasonable efforts to list the common shares and the warrant shares on the exchange, subject to the company fulfilling all of the listing requirements of the exchange.
About Nextech AR Solutions
Nextech is one of the leaders in the rapidly growing augmented reality (AR) industry, estimated to hit $120-billion by 2022, according to Statista.
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