Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) said it has received an initial $2 million cash infusion from fintech firm Ratio Technology.
The financing represents a zero-dilutive source of capital for the company as the cash was paid against future invoices for contracts that have not yet been settled.
Nextech3D.ai said it views this partnership with Ratio Technology as a significant long-term positive for its shareholders. It gives Nextech3D.ai almost unlimited access to non-dilutive capital for its purchase orders, including contracts with terms ranging from 12 to 36 months. This newfound access to long-dated purchase order financing greatly improves the company’s financial flexibility.
In a statement, Evan Gappelberg, CEO of Nextech3D.ai, expressed his satisfaction with the partnership, saying, “The company is pleased to have Ratio Technology as its partner and to be able to secure this $2 million in growth capital in such a critical manner. time in our growth curve, especially without selling a single share of stock, warrants or even granting options.”
He added: “This non-dilutive capital represents a major win for shareholders and sets the stage for rapid growth without dilution.”
USD 2 million in growth capital will primarily be allocated to further develop Nextech3D.ai’s ground-breaking generative AI for 3D modeling. The company expects this technology to lead to improved profit margins in the second half of 2023. Combined with access to non-dilutive capital, Nextech3D.ai aims to achieve self-funded growth, which is their goal for 2023 and beyond.
Nextech3D.ai clarified that no securities, including common stock, options or warrants, were issued in connection with this cash infusion. The interest rate for the financing is prime plus 3.5%.
With its revolutionary Generative-AI technology, Nextech3D.ai believes it has transformed the 3D modeling industry and secured a dominant position in the global e-commerce 3D model space. The company’s cutting-edge technology makes it possible to create photorealistic 3D models as digital copies of real products on a large scale, and caters to large corporate customers in the e-commerce market.
The company’s strategy involves developing or acquiring disruptive technologies and then spinning them off as stand-alone public companies, issuing stock dividends to shareholders while retaining a significant stake in the public spin-out.
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