Nextech AR Solutions Corp said it has entered into a securities purchase agreement for a private placement of its common shares and warrants with a single institutional investor for gross proceeds of about C$10 million.
The Vancouver-based company said it will use the net proceeds of the placement for working capital and general corporate purposes. No securities were offered or sold to Canadian residents in connection with the placement, which is expected to close on or about January 25, 2022, it added.
Under the placement, Nextech said it will issue 8,130,082 common shares and warrants to purchase up to an aggregate of 8,130,082 common shares at a purchase price of C$1.23 per common share and associated warrant.
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Each warrant will entitle the holder to purchase an additional share at an exercise price of C$1.54 per common share for a period of three years following the issuance date.
Nextech AR Solutions is a Metaverse company that develops and operates augmented reality (AR) platforms, transporting three-dimensional (3D) 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.
Nextech focuses on developing AR solutions for the metaverse, however, most of the company’s revenues are derived from three eCommerce platforms: vacuumcleanermarket.com (VCM), infinitepetlife.com (IPL) and Trulyfesupplements.com (TruLyfe). VCM and product sales of residential vacuums, supplies and parts, and small home appliances sold on Amazon.
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