Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) announced that it intends to raise up to C$637,500 through a private placement whereby it will issue 4,250,000 shares at C$0.15 per share.
It is expected that the private placement will close on or about December 29, 2023.
The company also said that it wished to clarify the terms of the recently announced agreement with VCI Global Limited which grants VCI the right to invest in and earn up to a 51% interest in Nextech's 3D modelling business.
It said that to facilitate the transaction, Nextech will transfer the assets of its 3D modelling business to a new, wholly-owned subsidiary in which VCI will have the right to earn up to a 51% interest by making cash payments aggregating C$12,112,500 over nine months.
The tranche payments do not involve the issuance of any Nextech shares.
Each tranche is optional and can be completed by VCI at its discretion.
As a condition of the transaction, VCI will be required to participate in a private placement in the aggregate amount of C$637,500. The terms of the private placement will be determined at the time of the agreement, Nextech said.
Nextech is a diversified augmented reality, artificial intelligence (AI) technology company that leverages proprietary AI to create 3D experiences for the metaverse.