Nextech AR Solutions Corp. (CSE:NTAR, OTCQX:NEXCF) said it has entered into an agreement with Research Capital Corp as sole agent and sole bookrunner in connection with an overnight marketed public offering of units of the company for gross proceeds of up to $3 million.
Each unit shall be comprised of one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of $1.03 - amended from an initially disclosed exercise price of $1.15 - for a period of 48 months following the closing of the offering.
The net proceeds from the offering will be used for working capital and general corporate purposes, it added.
READ: Nextech AR showcases AI powered human hologram tech at IAEE Expo
Nextech said it has also granted to the agent an option to increase the size of the offering by up to an additional number of units and/or the components that in aggregate would be equal to 15% of the total number of units to be issued under the offering, to cover overallotments, if any, and for market stabilization purposes, exercisable at any time and from time to time up to 30 days following the closing of the offering.
The offering is expected to close on or about January 31, 2023, or such other earlier or later date as the agent and company may agree upon. Closing is subject to the company receiving all necessary regulatory approvals, including any requisite approval of the Canadian Securities Exchange to list the common shares and the common shares issuable upon exercise of the warrants and the agent's broker warrants on the exchange.
Nextech AR intends to file a prospectus supplement to the company's short-form base shelf prospectus dated March 21, 2022, following pricing of the offering with the securities regulatory authorities in each of the provinces and territories of Canada (except Quebec).
Nextech AR is a diversified augmented reality, AI (artificial intelligence) technology company that leverages proprietary AI to create 3D experiences for the metaverse. Its main businesses are creating 3D WebAR photorealistic models for the prime e-commerce marketplace as well as many other online retailers.
-- Updates with amended warrants exercise price --
Contact the author at jon.hopkins@proactiveinvestors.com