NexTech AR Solutions Corp (CSE:NTAR) (OTCQB:NEXCF) closed a C$13.2 million financing designed to firm up the technology company’s capital as it scales to meet market demand.
The Vancouver-based firm raised gross proceeds of $13,227,500 via a short form prospectus offering led by Mackie Research Capital Corporation of 2,035,000 units priced at C$6.50.
In a statement Thursday, NexTech said the proceeds will be used for sales and marketing expenses, research and development, working capital, potential strategic acquisitions and general corporate purposes.
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“We are gratified that we have been able to raise this additional capital at this pivotal time in our company’s growth,” CEO Evan Gappelberg told shareholders.
“As we continue to rapidly scale, we are focused on hiring senior executives and operational roles across our businesses to manage the market demand. With this capital we are uniquely positioned to take full advantage of multiple fast growing industries, including video conferencing virtual events market, AR in Education, as well as the AR Ecommerce industry.”
Each unit consists of one share and one-half of one warrant exercisable at C$8 for a two-year period. The warrants are subject to an acceleration clause if the volume-weighted average share price exceeds C$11 for 15 consecutive trading days.
NexTech also granted Mackie an overallotment option, exercisable at any time up to 30 days from the closing of the offering, to increase the size of the offering by up to 15% of the number of units sold pursuant to the offering, on the same terms and conditions of the financing.
Contact Angela at angela@proactiveinvestors.com
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