Mr. Evan Gappelberg reports
CORRECTION: NEXTECH3D.AI PROVIDES SHAREHOLDER UPDATE ON KRAFTY LABS ACQUISITION AND ANNOUNCES $321,917 CEO INVESTMENT
Nextech3D.AI Corp. has provided shareholders with an update on its previously announced acquisition of Krafty Labs, a revenue-generating, AI-driven (artificial intelligence) event engagement and experiential technology company serving global enterprise customers.
Krafty Labs acquisition update
The company is pleased to confirm that the due diligence process has been successfully completed and the acquisition of Krafty Labs is scheduled to close on Jan. 2, 2026, subject to customary closing conditions, including Canadian Securities Exchange approval.
Krafty Labs brings a highly attractive blue-chip customer base, along with approximately $1.2-million in year-to-date 2025 revenue and gross margins of 72 per cent. Management believes this acquisition meaningfully enhances Nextech3D.AI's AI-first event platform and expands its reach into higher-value enterprise and association customers.
CEO (chief executive officer) convertible note investment demonstrates strong alignment
In connection with the company's continued execution and growth strategy, Evan Gappelberg, CEO of Nextech3D.AI, has committed to invest $321,917 directly into the company through an 18-month convertible note bearing 12-per-cent annual interest.
Key terms of the CEO investment include:
- Term: 18 months;
- Interest rate: 12 per cent per annum;
- Conversion option: at the CEO's sole discretion, the note may be converted into 2,299,412 common shares at a fixed conversion price of 16.5 cents per share (correction);
- Warrants issued: as compensation, the CEO will receive 2,299,412 common share purchase warrants;
- Warrant terms:
- Exercise price: 16.5 cents per share;
- Term: three years.
Mr. Gappelberg will continue to be the company's largest shareholder, currently owning 32,757,017 common shares, further reinforcing strong alignment between management and shareholders.
The transaction constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the transaction does not exceed 25 per cent of the company's market capitalization. The transaction is subject to approval of the Canadian Securities Exchange.
Management believes this insider investment reflects confidence in Nextech3D.AI's strategy, execution and long-term growth prospects.
Strengthening an AI-first event platform
The combination of Krafty Labs' enterprise-grade engagement capabilities with Nextech3D.AI's existing event technology stack is expected to drive increased average contract values, deeper customer relationships, and enhanced monetization opportunities across in-person, virtual and hybrid events.
Mr. Gappelberg, CEO of Nextech3D.AI, commented, "We believe the acquisition of Krafty Labs, combined with my personal investment in the company, represents a strong vote of confidence in Nextech3D.AI's direction and execution." He continued, "With due diligence complete and a closing date set, we are focused on integrating Krafty Labs and accelerating growth while continuing to build long-term shareholder value."
Looking ahead
With the Krafty Labs acquisition set to close on Jan. 2, 2026, Nextech3D.AI continues to advance its strategy of building a comprehensive, AI-powered event technology platform through disciplined acquisitions, organic growth and aligned insider investment.
About Nextech3D.AI Corp.
Nextech3D.AI is an AI-powered technology company specializing in 3-D asset generation, spatial computing and comprehensive AI event solutions for virtual, hybrid and in-person experiences. Through Map Dynamics, Eventdex and Krafty Labs, Nextech3D.AI delivers a unified global platform for Google, Microsoft, Netflix, Oracle, Yelp, ZoomInfo, Spotify and Meta conferences, expos, corporate activations, learning programs and enterprise engagement.
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