Nextech3D.ai Sells Map Dynamics to Focus on Patented High-Margin Generative AI-powered 3D Modeling Technology
Nextech3D.ai (NEXCF) has sold its non-core Map Dynamics business to ARway, enhancing its focus on AI-powered 3D modeling technology for e-commerce giants. The transaction involved the exchange of Map Dynamics for 4 million ARway shares, valued at over $1 million. This move increases Nextech3D.ai's stake in ARway to nearly 50%, allowing it to benefit from ARway's growth without operational responsibilities. The divestiture is expected to close by mid-June and is set to improve ARway's financials by adding approximately $1.2 million in revenue and $250,000 in free cash flow. Nextech3D.ai aims to advance its core competencies in generative AI and 3D modeling, positioning itself as a leader in the digital commerce space.
- Nextech3D.ai's sale of Map Dynamics will allow the company to focus on its high-margin, profitable 3D modeling technology.
- The transaction increases Nextech3D.ai's stake in ARway to nearly 50%, enhancing its potential for financial gain without management responsibilities.
- The divestiture will add approximately $1.2 million in revenue and $250,000 in free cash flow to ARway, indirectly benefiting Nextech3D.ai shareholders.
- Nextech3D.ai is strategically positioning itself as a leader in AI-powered 3D modeling for major e-commerce players.
- Nextech3D.ai's divestiture of Map Dynamics may be seen as a reduction in its business diversity.
- Relying heavily on the growth and success of ARway could expose Nextech3D.ai to risks if ARway underperforms.
- The focus on a single core competency may limit Nextech3D.ai's ability to pivot if the market for 3D modeling technology changes.
TORONTO, ON / ACCESSWIRE / May 21, 2024 / Nextech3D.AI (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a frontrunner in generative AI-powered 3D modeling technology for major e-commerce entities such as Amazon, Miele, P&G, Kohls, and Wesfarmers Group's "Bunnings," today announces its strategic pivot towards becoming a specialized AI 3D firm. The company has divested its Map Dynamics business, a non-core floor plan mapping software unit, to ARway (OTCQB:ARWYF)(CSE:ARWY), in exchange for or 4 million shares valued at over
The divestiture not only advances Nextech3D.ai's position in 3D modeling and AI technology but also enhances ARway's financial standing, contributing approximately
This strategic move allows the company to focus on further developing its core competencies in 3D and generative AI and underline Nextech3D.ai's commitment to leading the evolution of digital commerce through advanced 3D and AI modeling technologies.
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For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@nextechar.com
Nextech3D.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
About Nextech3D.ai
Nextech3D.ai or the "Company," (OTCQX: NEXCF) (CSE: NTAR) (FSE: 1SS), is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3D experiences at scale for E-COMMERCE. The Company's primary focus lies in creating high-quality 3D WebAR photorealistic models for Amazon and various other online retailers with patented 2D-3D technology. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3D models.
The Company also develops or acquires disruptive AI-technologies, which are subsequently spun out to shareholders as standalone public companies. This spin-out strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spin-out, without dilution to the parent company Nextech3D.ai.
Notably, Nextech3D.ai successfully spun out "ARway," (OTCQB: ARWYF | CSE: ARWY | FSE:E65 ) its spatial computing platform, as a standalone public company on October 26, 2022. The Company retains a
Similarly, Nextech3D.ai accomplished its second spin-out launching Toggle3D.ai, (OTCQB: TGGLF | CSE: TGGL | FSE: Q0C ) an AI-powered 3D design studio aimed at competing with Adobe. The Company retains a
Forward-looking Statements
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" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as 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.
SOURCE: Nextech3D.ai
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