NexTech Raises $1,161,780 Insiders Purchase 277,916 Shares
August 19 2019 - 6:50AM
InvestorsHub NewsWire
NexTech Raises
$1,161,780
Insiders Purchase 277,916
Shares
New York, NY -- Toronto, ON -- August
19, 2019 --InvestorsHub NewsWire
-- NexTech AR SolutionsCorp.
(the
“Company” or “NexTech”) (OTC: NEXCF) (CSE: NTAR) (FSE:N29) a rapidly
growing Augmented Reality (“AR”) technology company targeting three
multi-billion-dollar verticals in the AR industry, is pleased to
announce the closing of its private placement financing (the
“Offering”) for gross proceeds totaling
$1,161,780.00 comprised of 1,936,299 units (the
"Units") at a price of $0.60 per Unit. The net
proceeds of the Offering will be used for, including, but not
limited to, hiring additional sales professionals and continuing to
accelerate development of its ARitize™ Hollywood
Studios.
NexTech CEO Evan Gappelberg and President
Paul Duffy subscribed to this offering for an aggregate of 277,916
Units totaling of $136,750.00.
The company previously announced on July
19, 2019 that it closed a $1,589,500 management led round where
NexTech CEO Evan Gappelberg Invested $867,000. After today’s
closing the total capital raised by the company in the past 30 days
is $2,751,280, with over $1,000,000 coming from management.
The company is now fully funded as it prepares for
hypergrowth.
“I am very pleased to be able to raise
these additional funds as it allows NexTech to continue hiring
additional talented, experienced and dedicated team members which
will support us through this next phase of rapid growth. Over
the past 18 months we have built a powerful and broad array
of AR capabilities which are all embedded in our omni-channel
ARitize™ platform; including 3D product capture, 3D ads for
Facebook and Google, ‘Try-it-On’ technology for online apparel, 3D
and 360-degree product views, and ‘one click buy’. With this
additional capital NexTech will be uniquely positioned to leverage
our ARitize™ platform into retail, training and entertainment which
will propel our rapid growth into 2020 and beyond.” comments Evan
Gappelberg, CEO of NexTech.
Financing
Terms:
Each Unit consists of one common share
(the "Shares") and one-half of one share purchase
warrant (each whole warrant, a "Warrant"). Each
Warrant entitles the holder to purchase one additional Share at a
price of $0.75 for a period of two years from the date of issue of
the Warrants. The Warrants may be accelerated by the Company under
certain terms if the daily volume weighted average trading price of
the common shares of the Company exceeds $0.90 for 10 consecutive
trading days.
NexTech issued Paul Duffy, President and
Director, 100,000 options of the Company that vest over three years
at an exercise price of $0.75 CDN.
Financial Advisory
Agreement:
The Company has also entered into a six
(6) month financial advisory agreement with Mackie Research Capital
Corporation ("Mackie"), to provide a number of services, including,
but not limited to, capital markets advisory, financial and
operational analysis, and recommendations on strategic growth
objectives. As consideration for the services, the Company will pay
to Mackie a cash fee and issue to Mackie a total of 76,913 common
shares. The shares will be subject to a four month hold
period.
About
NexTech AR Solutions Corp.
NexTech, the first
publicly traded “pure-play” AR company, began trading on the CSE on
October 31st, 2018. NexTech has a two-pronged strategy for rapid
growth including growth through acquisitions and growth of its
omni-channel AR SaaS platform called ARitize™. NexTech has an
exclusive license to a portfolio of patents #7,054,831, #7,266,509
and patent-pending applications #15351508, #62457136, #62559487,
related to interactive gaming, interactive advertising, and
augmented reality (“AR”) technology.
The company is
pursuing three multi billion dollar verticals in
AR.
Aritize™ For
eCommerce; The company launched its technologically
advanced webAR for eCommerce early in 2019 and has been rapidly
signing up customers onto its SaaS platform, including notable
customers, Walther Arms, Wright Brothers, Mr. Steak, and Budweiser.
NexTech has the first ‘full funnel’ end-to-end eCommerce solution
for the AR industry including its 3D product capture, 3D ads for
Facebook and Google, ‘Try it On’ technology for online apparel, 3D
and 360-degree product views, and ‘one click
buy.
Aritize™
University; having launched in June 2019, the
app-based solution allows companies and educational establishments
to leverage all of their existing 2D assets - YouTube videos, PDF
documents, PowerPoint decks, images, etc. - and then overlay
immersive 3D-AR experiences alongside that content for an
interactive training experience that drives
productivity.
ARitize™ Hollywood
Studios; Expected to launch in Q4 2019, the
studio has created a proprietary entertainment venue for which it
is producing immersive content using augmented reality as the
primary display platform. Heading up AR Studios is Paul Duffy,
inventor of the human hologram and President of NexTech AR
Solutions. Advising the AR Studio team is Barry Sandrew, Ph.D., a
visual effects pioneer and serial entrepreneur who invented digital
colorization of black and white movies, as well as a process for
converting 2D feature films to 3D. The NexTech engineering teams in
Dallas and Austin are building out the software that will drive
both AR content creation and its
distribution.
To learn
more, please follow us on Twitter, YouTube, Instagram,LinkedIn, and Facebook, or visit our website:
https://www.nextechar.com.
As insiders of NexTech participated in
this Offering, it is deemed to be a “related party transaction”
within the meaning of Multilateral Instrument 61-101 Protection
of Minority Security Holders in Special
Transactions(“MI 61- 101”). NexTech is
relying on the exemptions from the formal valuation and minority
approval requirements contained in Sections 5.5(a) and 5.7(1)(a) of
MI 61-101, on the basis that the fair market value of the
transaction does not exceed 25% of NexTech’s market
capitalization. The Company will be filing a material change
report in respect of the related party transaction on SEDAR less
than 21 days prior to the closing of the transaction due to the
fact that the Company wished to close the transaction as soon as
practicable to enable it to use the funds for short-term cash
requirements. The Company plans to use the net proceeds of
the offering to hire additional sales people, pursue M&A
opportunities, and for general working capital
purposes.
All securities issued are subject to a
four-month hold period from the date of issuance. The
securities offered have not been registered under the United
States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration
requirements.
On behalf of the Board of
NexTech AR Solutions Corp.
“Evan
Gappelberg”
CEO and Director
For further information, please
contact:
Evan Gappelberg
Chief Executive
Officer
info@nextechar.com
The CSE has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
Certain information contained herein may
constitute “forward-looking information” under Canadian securities
legislation. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as, “will
be”, “plans” or variations of such words and phrases or statements
that certain actions, events or results “will” occur.
Forward-looking statements regarding the use of proceeds of the
Offering and the filing of a material change report are based on
the Company’s estimates and are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
levels of activity, performance or achievements of NexTech to be
materially different from those expressed or implied by such
forward-looking statements or forward-looking information,
including capital expenditures and other costs. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and
forward-looking information. NexTech will not update any
forward-looking statements or forward-looking information that are
incorporated by reference herein, except as required by applicable
securities laws.
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