Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) announced it is making a strategic pivot toward becoming a specialized AI 3D firm with the divestment of its non-core floor plan mapping software unit Map Dynamics (Map D).
The provider of 3D models for eCommerce companies said it has divested Map D to spin out company ARway.ai (CSE:ARWY, OTCQB:ARWYF) in exchange for 4 million shares valued at more than $1 million based on Friday’s closing price of $0.26.
The deal brings Nextech3D.AI’s stake in ARway to almost 50%, which the company said allows it to share in ARway's and Map D’s upside without having to manage the business on a day-to-day basis.
Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) added that the transaction streamlines its operations by allowing it to focus exclusively on its high-margin, generative AI-powered 3D modeling technology.
“This strategic move allows the company to focus on further developing its core competencies in 3D and generative AI and underline Nextech3D.ai's commitment to leading the evolution of digital commerce through advanced 3D and AI modeling technologies,” the company said in a statement.
It also enhances ARway’s financial position, adding $1.3 million in revenue and about $250,000 in free cash flow, “creating a win-win combination for shareholders of both companies,” Nextech3D.ai said.
The transaction is expected to close in the first half of June.