In today’s economy, many tech firms are hyper focused on a small subsect of the target market that their product addresses. While this has been a successful business model in the past, as we move towards a world where multiple pieces are required to solve the puzzle that is a successful shift to the next generation, few firms are as forward looking as our partner, Nextech AR Solutions (OTCQX: $NEXCF, CSE: $NTAR, FSE: $EP2). Nextech is focused on building out an AR ecosystem that provides all the tools needed for firms to capitalize on the shift from photography to 3D modeling, and towards AR for navigation with an intelligent interface to boot.
In addition to building out a portfolio of technologies that will optimize this transition for clients, Nextech has also created an incubator inspired business model that can provide tremendous value to investors through their suite of products. Last October, this model was put to the test as Nextech’s AI powered, augmented reality navigation platform, ARway.ai first hit the public markets, and passed with flying colours!
As a result of this spinoff, investors gained value through the price appreciation of ARway stock, and through the value reflected within Nextech’s own balance sheet. In terms of share price, ARway.ai IPO’d at $0.25 CAD, and as of the time of writing, it trades at $1.15 CAD. While in the past, these business verticals were undifferentiated, and therefore undervalued by the broader market, due to Nextech’s 50% ownership, half of the current market value of ARway.ai’s and soon Toggle3D.ai’s shares will be added to Nextech’s assets.
The Transformative Spinout of Toggle3D.ai
While the ARway.ai IPO represents the past and substantiates the success Nextech has had in transformative spinoff transactions, their planned spinoff of Toggle3D.ai represents an important part of the firm’s future. This arm of their product suite is an AI-powered, all-inclusive 3D design studio that seamlessly integrates with CAD and is fully web-operable. The video below is a short example of the Toggle3D studio in action!
Nextech has fully built out its Toggle3D.ai product and has had early success given its innovative approach to penetrating the projected $11B CAD file creation market. The design studio, which doesn’t even require any code to operate and only costs $29/month/user, leverages Nextech’s generative AI technology to achieve the user-friendly platform it has. As a result, Nextech is ready for Toggle3D.ai to spin out and just recently, the company has announced the details of this event which are set to unlock shareholder value in a very similar fashion to how the ARway spinoff went down
In the Toggle3D.ai case, Nextech shareholders will receive 20% of the spunout subco’s shares on a pro-rata basis, essentially acting as a special dividend for current investors. Moreover, alongside this arrangement, the spunout subco will also be raising a minimum of $1.5M through a special purchase vehicle that will see investors acquire subscription receipts, priced at $0.25 that convert to one common share of Toggle3D.ai as well as one warrant with an exercise price of $1/share, valid for a three year period. Read more on this transaction here.
Outside of the announced spin-offs, Nextech’s product suite contains a multitude of solutions that are being used by a variety of firms worldwide. The trifecta of ARitize 3D, Aritize Decorator, and Map D provide the perfect complement to the business lines previously mentioned as their functions build out the 360-degree approach that Nextech is after.
First, the ARitize 3D Configurator and its patent-pending technology leverages AI to enhance the ability to convert 2D images into 3D content, giving a customer the ability to build quality, colour-changing, 3D models from simple photos at scale for e-commerce websites. This disruptive solution within the augmented reality industry serves the customer a single integrated platform to automatically upload up to thousands of photos per week to be developed, all while hosted on ARitize 3D’s cloud.
Second, the ARitize Decorator allows customers to take these 3D versions of products that have been developed using the ARitize 3D configurator, into a provided template or an uploaded version of their own living/working environment. By having the ability to preview these true-to-scale products, the customer is ultimately much more satisfied with their purchase, as they already know what exactly that new chair, couch, or table may look like in their home or office.
Last but not least, Map D is another one of Nextech’s products that makes any event planning features you need to manage and execute in the easiest solution available. Through a fast and easy setup, Map D transforms complex event production into a very easy-to-use experience, giving companies the ability to manage any type of event whether it be in person, online, or hybrid.