The augmented reality company sold almost 2 million units for $0.60 apiece, which consist of one share of stock and one half of a share purchase warrant. A whole warrant is good for one share at a price of $0.75.
On Friday, the company’s shares closed at $0.56 on the OTC Markets.
NexTech plans to use the funds to hire new sales staff and advance its AR Studio offerings as it continues to grow, and management led the way. CEO Evan Gappelberg and President Paul Duffy got in on the offering to the tune of 277,916 units for $136,750.
“I am very pleased to be able to raise these additional funds as it allows NexTech to continue hiring additional talented, experienced and dedicated team members which will support us through this next phase of rapid growth,” Gappelberg said in a statement.
The latest round of new capital adds to the previous management-led roughly $1.6 million private placement on June 19, of which Gappelberg invested $867,000. With the new funds in tow, NexTech is now fully funded for hypergrowth, the company said.
The company also granted Gappelberg and Duffy 125,000 stock options that exercise at C$0.75.
Shares of NexTech slipped 4.1% to C$0.70 on Bay Street and 5.4% to US$0.53 in New York.
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