Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) said it has received an initial $2 million cash infusion from fintech firm Ratio Technology.
The funding represents a zero-dilutive capital source for the company as the cash was paid against future invoices for contracts that have not yet been settled.
Nextech3D.ai said it considers this partnership with Ratio Technology as a significant long-term positive for its shareholders. It provides Nextech3D.ai with almost unlimited access to non-dilutive capital for its purchase orders, including contracts with terms ranging from 12 to 36 months. This newfound access to long-dated purchase order funding greatly enhances the company's financial flexibility.
In a statement, Evan Gappelberg, the CEO of Nextech3D.ai, expressed his satisfaction with the partnership, saying: "The company is pleased to have Ratio Technology as its partner and to be able to secure this $2 million in growth capital at such a critical time in our growth curve, especially without selling a single share of stock, warrants, or even granting options."
He added: "This non-dilutive capital represents a major win for shareholders and sets the stage for rapid growth without dilution."
The $2 million in growth capital will primarily be allocated to further develop Nextech3D.ai's breakthrough generative AI for 3D modeling. The company anticipates that this technology will lead to improved profit margins in the second half of 2023. Combined with the access to non-dilutive capital, Nextech3D.ai aims to achieve self-funded growth, which is their goal for 2023 and beyond.
Nextech3D.ai clarified that no securities, including common shares, options, or warrants, were issued in connection with this cash infusion. The interest rate for the funding is prime plus 3.5%.
With its revolutionary Generative-AI technology, Nextech3D.ai believes it has transformed the 3D modeling industry and secured a dominant position in the global 3D model space for e-commerce. The company's breakthrough technology enables the creation of photo-realistic 3D models as digital replicas of real-world products at scale, catering to large enterprise customers in the eCommerce market.
The company's strategy involves developing or acquiring disruptive technologies and subsequently spinning them out as stand-alone public companies, issuing stock dividends to shareholders while retaining a significant ownership stake in the public spin-out.
Contact the author at jon.hopkins@proactiveinvestors.com