Mr. Evan Gappelberg reports

NEXTECH3D.AI RECEIVES $2 MILLION IN CASH FROM $400 MILLION FINTECH RATIO TECH

Nextech AR Solutions Corp. has received an initial $2-million cash infusion from FinTech Ratio Tech, representing zero-dilutive funding. The $2-million in cash was paid against future invoices that the company has contracts for but has not yet been paid for. The company views this new relationship with Ratio as a substantial long-term positive for shareholders as it provides almost unlimited access to a non-dilutive capital source for its purchase orders, some of which are contracts with 12-month to 36-month terms. This new access to non-dilutive capital on these long-dated purchase orders has greatly enhanced Nextech's financial flexibility.

Evan Gappelberg, chief executive officer of Nextech, comments: "The company is pleased to have Ratio Technology as its partner and to be able to secure this $2-million in growth capital at such a critical time in our growth curve, especially without selling a single share of stock, warrants or even granting options. This non-dilutive capital represents a major win for shareholders and sets the stage for rapid growth without dilution." He continues: "This $2-million in growth capital is going to be used primarily to continue to build out our breakthrough generative AI [artificial intelligence]. With our breakthrough generative AI for 3-D modelling, we expect to see rapidly improving profit margins in the second half of 2023, which, when combined with access to non-dilutive capital, positions us for being able to self-fund our growth, which is our goal in 2023 and beyond."

The company has not issued any security or securities including common shares, options or warrants in connection with this $2-million cash infusion. The interest rate is prime plus 3.5 per cent.

With Nextech's breakthrough generative-AI technology, the company believes it has revolutionized the 3-D modelling industry, and gained a major competitive edge solidifying its leadership position in the global 3-D model space for e-commerce. Nextech is making it possible to create photo-realistic 3-D models as digital replicas of real-world products at scale for large enterprise customers in the e-commerce market.

Recent news:

• Nextech signs enterprise renewal contract with S&P 400 company for over 5,000 3-D models;
• Nextech provides earnings call details for Q1 2023 financial results May 18;
• Expansion contract With Vornado Air LLC to bring 3-D models onto the Prime marketplace;
• Nextech signs enterprise renewal and expansion contract with major e-commerce brand for 3,000 3-D models;
• Nextech achieves major generative AI breakthrough in text to 3-D material generation.

About Nextech AR Solutions Corp.

Nextech is a diversified augmented reality (AR), AI technology company that leverages proprietary artificial intelligence (AI) to create 3-D experiences for the metaverse. Its main businesses are creating 3-D WebAR photorealistic models for the Prime e-commerce marketplace as well as many other on-line retailers. The company develops or acquires what it believes are disruptive technologies and, once commercialized, spins them out as stand-alone public companies issuing a stock dividend to shareholders while retaining a significant ownership stake in the public spinout.

On Oct. 26, 2022, Nextech spun out its spatial computing platform, ARway, as a stand-alone public company. Nextech retained a control ownership in ARway Corp. with 13 million shares, or a 50-per-cent stake, and distributed four million shares to Nextech AR shareholders. ARway is disrupting the augmented reality wayfinding market with a no-code, no-beacon spatial computing platform enabled by visual marker tracking.

On Dec. 14, 2022, Nextech announced its second spinout of Toggle3D, an AI-powered 3-D design studio, to compete with Adobe. Toggle3D is expected to be public in the first half of 2023.

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