August 20, 2019 – NexTech AR Solutions Corp. announced yesterday the closing of its private placement financing for gross proceeds totaling CAD $1,161,780.00 comprised of 1,936,299 units at a price of CAD $0.60 per Unit*. NexTech stated that 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.
Both NexTech CEO Evan Gappelberg and President and Director Paul Duffy subscribed to this offering for an aggregate of 277,916 Units totaling of CAD $136,750.00. NexTech issued Paul Duffy 125,000 options of the Company that vest over three years at an exercise price of $0.75 CDN.
The company previously announced on July 19, 2019 that it closed a CAD $1,589,500 management led round where NexTech Gappelberg Invested CAD $867,000. After today’s closing the total capital raised by the company in the past 30 days is CAD $2,751,280, with over CAD $1,000,000 coming from management. NexTech stated that 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.” commented Evan Gappelberg, CEO of NexTech.
The Company has also entered into a six month financial advisory agreement with Mackie Research Capital Corporation, to provide a number of services, including capital markets advisory, financial and operational analysis, and recommendations on strategic growth objectives. As consideration for the services, NexTech 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.
*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.
Image credit: NexTech AR Solutions
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Sam is the Founder and Managing Editor of Auganix. With a background in research and report writing, he has been covering XR industry news for the past seven years.