Nextech AR Solutions Corp. (NEO:NTAR.NE) (CSE:NTAR) said it has upsized its 'bought-deal' offering, announced on Thursday night, to an aggregate of 2,610,000 units at a price of $5.00 each to raise gross proceeds of $13,050,000
Initially, Mackie Research Capital Corporation, as the sole underwriter and sole bookrunner for the offering had been looking to sell-on 2,000,000 units in NextechAR at a price of $5.00 each to raise gross proceeds of $10 million
The company said the net proceeds from the offering will be used for working capital and general corporate purposes.
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Each unit in the offering will be comprised of one common share of the company and one-half of one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of $6.00 at any time up to 24 months from closing of the offering, subject to an accelerated expiry if the volume-weighted average price of the common shares on the Neo Exchange Inc. exceeds $10.00 for 15 consecutive trading days.
At any time after such an occurrence, the company may give written notice to the holders of the warrants that they will expire on the 30th day following the giving of notice unless exercised by the holders prior to such date.
The company said it has also granted the underwriter an option to increase the size of the offering by up to an additional number of units that in aggregate would be equal to 15% of the total number of units to be issued under the offering, exercisable at any time and from time to time up to 30 days following the closing.
The closing of the offering is expected to occur on or about March 11, 2021, or such later or earlier date as the underwriter and the company may agree upon, and is subject to the company receiving all necessary regulatory and stock exchange approvals.
The units will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec) under National Instrument 44-101 – Short Form Prospectus Distributions and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable US law.
Nextech is one of the leaders in the rapidly growing Augmented Reality (AR) market estimated to grow from US$10.7B in 2019 and projected to reach US$72.7B by 2024 according to Markets & Markets Research; it is expected to grow at a CAGR of 46.6% from 2019 to 2024.
Contact the author at jon.hopkins@proactiveinvestors.com