NexTech Signs LOI to Acquire eCommerce Business Generating $1.6 Million USD in Revenue and $600,000 EBITDA
May 07 2019 - 8:35AM
InvestorsHub NewsWire
NexTech Signs LOI to
Acquire eCommerce Business Generating $1.6 Million USD in Revenue
and $600,000 EBITD
New York, NY -- Toronto, ON
-- May 7, 2019 -- InvestorsHub Newswire
-- NexTech AR
Solutions (the “Company” or “NexTech”) (OTCQB: NEXCF) (CSE: NTAR) (FSE: N29)
is pleased
to announce that it has signed an LOI to acquire an eCommerce
business that generated USD $1.6 million in revenue and $600,000 in
EBITDA in 2018, for the purchase price of $2,000,000. The purchase
will be paid for with 50% stock and 50% in cash with the stock
portion priced at $0.58USD or $0.77CDN. The company is currently
conducting its due diligence, which is expected to last four weeks,
with an expected closing of the transaction to follow.
NexTech has already closed on three acquisitions in
2019 - one in January (AR
eCommerce), one in February (Hootview),
one in April (Infinite
Pet) - with the most recent
LOI a continued execution on its strategy to grow through the
acquisition of revenue generating eCommerce companies that possess
industry-leading positions. In 2019 alone, NexTech has made three
revenue-generating acquisitions and upon closing of this new
acquisition, NexTech will be the fastest-growing, highest revenue
generating AR eCommerce company in the industry.
"This LOI sets the stage for our
fourth acquisition in 2019 and, upon closing, would push our
AR-enabled eCommerce division to a trailing 12-month run rate of
USD $6.5 million in consolidated revenue and $1.5 million in
EBITDA. For 2019, we are projecting to grow the revenue to $9.3
million USD generating $5 million in gross profits and over $2
million in EBITDA just from our AR-enabled eCommerce division,"
said Evan Gappelberg, CEO of NexTech. "Since going public on
October 31, 2018, we have been focused on revenue and cash flow
from eCommerce acquisitions as well as launching our AR SaaS
platform around our three verticals, AR eCommerce, AR university,
and AR live streaming. While our AR eCommerce SaaS platform has
launched with many customer wins, we’re excited to be launching our
AR university platform and AR live streaming both within the next
120 days, which are also expected to be very strong engines of
growth in 2019.”
About NexTech AR Solutions
Corp.
NexTech is
bringing a next-generation web-enabled augmented reality (AR)
platform with Artificial Intelligence (AI) and analytics to the
Cannabis industry, eCommerce, education, training, healthcare and
video conferencing. Having integrated with Shopify, Magento,
Wordpress, IBM Watson and Microsoft’s Azure (AI), its technology
offers eCommerce sites a universal 3D shopping solution. With just
a few lines of embed code, the company’s patent-pending platform
offers the most technologically advanced 3D AR/AI technology
anywhere. Online retailers can subscribe to NexTech’s
state-of-the-art, 3D AR/AI solution for $79/mo. The company has created the AR
industry’s first end-to-end affordable, intelligent, frictionless,
scalable platform. To learn more, please follow us on Twitter, YouTube, Instagram,
LinkedIn, and Facebook, or
visit our website: https://www.nextechar.com.
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
Media contact:
Erin Hadden
FischTank Marketing and PR
ehadden@fischtankpr.com
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, “will be”, “looking forward”
or variations of such words and phrases or statements that certain
actions, events or results “will” occur. Forward-looking statements
regarding the Company increasing investors awareness 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,
levels 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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