Nextech AR Solutions Corp said it has closed its previously announced private placement of its common shares and warrants with institutional investors for gross proceeds of approximately C$5 million.
Under the private placement, the company issued 3,030,304 common shares and warrants to purchase up to an aggregate of 1,515,152 common shares at a purchase price of C$1.65 per common share and associated one-half of one warrant. Each whole warrant entitles the holder to purchase one common share at an exercise price of C$1.92 for a period of three years following the issuance date.
The net proceeds of the private placement will be used by the company for working capital and general corporate purposes, including, without limitation, acquisitions of assets used in the company’s business and strategic transactions and/or acquisitions.
READ: Nextech AR inks deal to raise C$5M in private placement with institutional investors
No securities were offered or sold to Canadian residents in connection with the private placement.
HC Wainwright & Co. acted as the exclusive placement agent for the private placement. The company has paid an aggregate cash commission of C$400,000 and issued an aggregate of 242,424 broker warrants to the placement agent and its assignees, each entitling the holder to acquire one common share at an exercise price of C$2.0625 for a period of three years following the issuance date.
Nextech develops and operates AR platforms that transports three-dimensional product visualizations, human holograms and 360° portals to its audiences altering e-commerce, digital advertising, hybrid virtual events (events held in a digital format blended with in-person attendance) and learning and training experiences.
The company focuses on developing AR solutions however most of the company’s revenues are derived from three e-Commerce platforms - vacuumcleanermarket.com (VCM), infinitepetlife.com and Trulyfesupplements.com. VCM and product sales of residential vacuums, supplies and parts, and small home appliances which are sold on Amazon.
Contact the author at jon.hopkins@proactiveinvestors.com