Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) has provided an update on its previously announced acquisition of Krafty Labs and disclosed a new investment by its chief executive officer.
The company said it has completed due diligence on Krafty Labs, an AI-driven event engagement and experiential technology company, and expects the transaction to close on January 2, 2026, subject to customary closing conditions, including approval from the Canadian Securities Exchange.
According to Nextech3D.ai, Krafty Labs generated approximately $1.2 million in year-to-date 2025 revenue, with gross margins of about 72%, and serves enterprise and association customers. Nextech3D.ai said that the acquisition is intended to expand its event technology offerings and customer base.
Additionally, the company announced that CEO Evan Gappelberg has committed to invest $321,917 in Nextech3D.ai through an 18-month convertible note bearing interest at 12% per annum. The note may be converted, at Gappelberg’s discretion, into 2,299,412 common shares at a conversion price of $0.165 per share.
As part of the transaction, Gappelberg will also receive 2,299,412 common share purchase warrants, each exercisable at $0.165 per share for a period of three years.
Nextech3D.ai said Gappelberg remains its largest shareholder, holding 32,757,017 common shares.
"We believe the acquisition of Krafty Labs, combined with my personal investment in the company, represents a strong vote of confidence in Nextech3D.ai's direction and execution," Gappelberg said in a statement.
"With due diligence complete and a closing date set, we are focused on integrating Krafty Labs and accelerating growth while continuing to build long-term shareholder value."
US-listed shares of Nextech gained 3% on Tuesday morning.