Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) announced that it has entered into a binding agreement with VCI Global Limited whereby VCI can earn up to a 51% interest in Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF)’s 3D modelling business over an approximately nine-month term.
The company said that VCI can earn its interest in the business in tranches by making cash payments to Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF).
It can earn up to a 15% stake for a total of C$12.75 million, with each tranche optional and to be completed at VCI’s discretion.
Related to the transaction, Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) said it will transfer its 3D modelling business into a new subsidiary in which VCI will earn its percentage interest upon the completion of each investment tranche.
In a concurrent private placement, VCI will purchase shares of the company for aggregate gross proceeds of C$637,500 upon terms yet to be determined.
"I am excited to enter this partnership with VCI Global Limited, and welcome Victor Hoo who is making a substantial investment in Nextech3D.ai of up to C$12.75 million,” Nextech3D.ai CEO Evan Gappelberg said in a statement.
“This capital infusion will be instrumental in advancing our portfolio of businesses and furthering our commitment to the transformative potential of AI."
He said that this partnership and financing positions the company to enhance its technology and scale its operations in 2024.
“With this growth capital we are poised to continue navigating the evolving landscape of technology, unlock new growth opportunities, and solidify our position as industry leaders,” Gappelberg said.
Nextech3D.ai is a diversified augmented reality, AI technology company that leverages proprietary AI to create 3D experiences for the metaverse. Its primary business is creating 3D WebAR photorealistic models for online retailers.