via NEWMEDIAWIRE -- NexTech AR Solutions Corp. (the “Company” or
“NexTech”) (CSE: NTAR) (OTC: NEXCF) (FSE: N29) is pleased to
announce that it has closed on its acquisition announced January
8th, 2019. The VCM business owned by AR Ecommerce is a now a
division of NexTech which generated approximately $2,650,000 (USD)
in revenue and $275,000 (USD) in EBITDA for the calendar year 2018.
The revenue for the month of January to date is $115,000 USD.
NexTech has already started to integrate its patent pending
web enabled AR with very positive results to date. This acquisition
brings in house an established eCommerce operating business which
NexTech will use as a showcase for its augmented reality (AR) and
artificial intelligence (AI) technology stack as well as a
foundation for additional strategic acquisitions.
This acquisition will:
● Build a strong financial base for our business with key
eCommerce partners already in place like Amazon, PayPal, eBay, and
established relationships with large well-known brands like Miele,
Dyson, and Electrolux.
● Accelerate the launch of existing and exciting new AR and AI
technologies.
● Advance and significantly enhance our knowledge of the AR
customer journey through analyzing real time data from our xAPI
analytics already installed on site.
● Enable the fast integration of a broad range of AR and AI
capabilities onto the site creating a one of a kind eCommerce AR/AI
showcase for consumers and prospects.
“This acquisition allows us to jump ahead of the pack in the AR
eCommerce space and provides a solid foundation of assets for
NexTech to leverage into additional eCommerce acquisitions,”
comments Evan Gappelberg, CEO of NexTech. He continues, “If we can
buy eCommerce companies and increase the velocity of sales with the
integration of our AR and AI technology, then we see that as a very
big win and an exciting business opportunity. With this acquisition
we're not just offering AR as a technology to others but using it
ourselves to create the most robust AR/AI technology stack
available in the market today.”
The company is seeing very positive early results from
integration of its web enabled AR with just one product. These
results include:
● The first ARitized product on site generated 1 months’ worth
of sales ($5,000) in just 1 week.
● Overall dwell time on page for the ARitized product increased
30% over a 4 week span.
● Revenue per user was up 100%
Over the next few weeks NexTech will be launching 10 more AR
products onto the site. Next month the company expects to advance
its eCommerce capabilities as it integrates IBM Watson's Machine
Learning into the site. Owning its own eCommerce site allows the
company to test and integrate new technologies creating additional
value for its eCommerce business, its AR platform and
shareholders.
NexTech is also pleased to announce that its shares are now DTC
eligible for trading within the United States marketplace. The
Depository Trust Company (DTC) is a subsidiary of the Depository
Trust & Clearing Corporation DTCC, and manages the electronic
clearing and settlement of publicly traded companies. Securities
that are eligible to be electronically cleared and settled through
the DTC are considered "DTC eligible." This electronic method of
clearing securities speeds up the receipt of stock and cash, and
thus accelerates the settlement process for investors.
About NexTech AR Solutions Corp.
NexTech is bringing augmented reality (AR) to the masses by
creating an AR ecosystem featuring eCommerce solutions for
websites, AR learning and education as well as AR live streaming
for events. The company has filed a patent around its AR
web-enabled eCommerce platform which has been integrated with
Shopify, Wordpress and Magento. The AR can “go live” on any ecomm
site with just a few lines of embed code creating a highly scalable
platform. The global eCommerce industry is a $2.8 trillion-dollar
marketplace and growing. NexTech has acquired its e-learning
platform “edCetra” which has been used by Fortune 500 companies
such as Imperial Oil, Bombardier and Staples, as well as the
Library of Congress and others to educate and train employees.
NexTech has added augmented reality training and education options
into the platform and expects to launch in 2019. The company is
also working on bringing forth its AR live streaming platform for
shows and live events. All of the companies platforms run off
of one CRM which allows for its AR ecosystem to rise up. NexTech
launched its ARitize™ app in August 2018, which is capable of
hosting many brands 3D objects and augmented reality experiences.
NexTech also owns a large and diverse revenue generating App
Portfolio that is deployed on the iTunes and Google play store
which it intends to ARitize™.
On behalf of the Board of NexTech AR Solutions Corp.
“Evan Gappelberg”
CEO and Director
For further information, please contact:
Evan Gappelberg
Chief Executive Officer
info@nextechar.com
Early WarningPursuant to an agreement dated
January 7, 2019 (the “Agreement”) between NexTech AR Solutions
Corp. (the “Company”), Evan Gappelberg (“Gappelberg”) and Reuben
Tozman (“Tozman” together with Gappelberg, the “Vendors”),
Gappelberg received 1,000,000 common shares of the Company (at a
deemed price of $0.81 per share) as part of the aggregate
consideration for the Company’s acquisition of 100% of the
membership interests of AR Ecommerce, LLC from the Vendors.
Gappelberg, concurrently with closing of the transactions
contemplated under the Agreement, also transferred 225,000 common
shares to other persons. As a result of the foregoing combined
transactions happening, Gappelberg (c/o 349 Carlaw Ave, Suite 304,
Toronto, Ontario M4M 2T1) now owns an additional 775,000 common
shares of the Company.
Immediately prior to the aforementioned transactions, Gappelberg
owned and/or had control or direction over 4,500,000 common shares
of the Company representing approximately 9.39% of the issued and
outstanding shares of the Company at such time, on an undiluted
basis.
As a result of the transactions, Gappelberg now owns and/or has
control or direction over 5,275,000 common shares of the Company
representing approximately 10.57% of the issued and outstanding
common shares of the Company, on an undiluted basis. This
represents an approximate 1.18% change in Gappelberg’s ownership of
common shares of the Company.
Gappelberg also owns and/or has control over a total of 60,000
stock options and 1,000,000 warrants to purchase common shares of
the Company. If Gappelberg were to exercise all of his stock
options and warrants, he would then own and/or have control over
6,335,000 common shares of the Company representing approximately
12.43% of the issued and outstanding common shares of the Company,
assuming that no further common shares of the Company have been
issued.
Gappelberg holds the securities for investment purposes, and has
no present intention to acquire or dispose of further securities of
the Company. Gappelberg may, in the future participate in
financings and/or acquire or dispose of securities of the Company
in the market, privately or otherwise, as circumstances or market
conditions warrant.
The disclosure respecting Gappelberg’s shareholdings contained
in this press release is made pursuant to Multilateral Instrument
62-104 and a report respecting the above acquisition will be filed
with the applicable securities commissions using the Canadian
System for Electronic Document Analysis and Retrieval (SEDAR) and
will be available for viewing at www.sedar.com.
MI 61-101
Tozman and Gappelberg are each “insiders” of the Company. The
transaction with each “insider” constitutes a “related party
transaction” for purposes of Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions(“MI
61- 101”). The disinterested directors of the Company, acting in
good faith, considered and approved the transaction. The Company is
relying on the exemptions from the formal valuation and minority
approval requirements of MI 61-101 contained in Sections 5.5(a) and
5.7(1)(a) of MI 61-101 in respect of related party participation on
the basis that the fair market value of the transaction does not
exceed 25% of the Company’s market capitalization. The Company will
file a material change report providing disclosure in relation to
each “related party transaction” on SEDAR under the Company’s
profile at www.sedar.com. The Company did not file the
material change report more than 21 days prior to the closing of
the transaction due to the timing of the announcement and closing
occurring in less than 21 days.
The CSE has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
Certain information contained herein may constitute
“forward-looking information” under Canadian securities
legislation. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as,
“plans, “will, “will be”, “expects” “looking forward” or variations
of such words and phrases or statements that certain actions,
events or results “will” occur. Forward-looking statements
regarding NexTech using the eCommerce business to showcase its AR
and AI technology; the anticipated benefits of the acquisition to
NexTech’s business, the launch of 10 AR products onto NexTech’s
site; the advance of NexTech’s eCommerce capabilities after
integrating IBM Watson’s Machine Learning; anticipated eCommerce
sales for 2019;and the launch of added augmented reality training
and education options into the Company’s platform in 2019 are based
on the Company’s estimates and are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of NexTech
to be materially different from those expressed or implied by such
forward-looking statements or forward-looking information,
including capital expenditures and other costs. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and
forward-looking information. NexTech will not update any
forward-looking statements or forward-looking information that are
incorporated by reference herein, except as required by applicable
securities laws.
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