NEXTECH CLOSES ON $3,000,000 PRIVATE PLACEMENT; FINANCING PROVIDES CAPITAL TO ACHIEVE PLANNED 10X REVENUE GROWTH IN 2020

By: NexTech

NEXTECH CLOSES ON $3,000,000 PRIVATE PLACEMENT; FINANCING PROVIDES CAPITAL TO ACHIEVE PLANNED 10X REVENUE GROWTH IN 2020

Nextech AR Solutions Corp. has closed a non-brokered private placement of four million units priced at 75 cents per unit for gross proceeds of $3-million. Each unit comprises one common share and one share purchase warrant exercisable at 93 cents per share for a period of two years from issuance, subject to acceleration. The use of proceeds will be used for increasing the sales team, pursuing merger and acquisition (M&A) opportunities, and general working capital purposes.

Evan Gappelberg, chief executive officer, of Nextech, comments: “We are fortunate to have long-term investors that continue to invest in Nextech; 75 per cent of the money raised in this round is from existing investors and shareholders, which is truly amazing and gratifying. I want to thank our investors for supporting our efforts.” He continues, “We view this raise as important, as it gives us the funds needed to execute on hitting our stated goals of 10 [times] revenue growth in calendar year 2020.”

A finder’s fee equal to 8 per cent in cash and 8 per cent in broker warrants was paid upon $913,249.50, and a finder’s fee equal to 4 per cent in cash and 4 per cent in broker warrants was paid upon $1,642,000.50, in respect to the offering. Each broker’s warrant was issued on the same terms as the warrants issued under the offering. All securities issued are subject to a four-month hold period from the date of issuance, expiring on March 23, 2020.

About Nextech AR Solutions Corp.

Nextech is one of the leaders in the rapidly growing augmented reality (AR) industry, estimated to hit $120-billion by 2022, according to Statista. Nextech, the first publicly traded pure-play AR company, began trading on the Canadian Securities Exchange on Oct. 31, 2018.