NexTech AR Solutions Corp. (NTAR:CSE; NEXCF:OTCQB) announced in a news release that it signed a letter of intent to acquire Jolokia in an all-stock transaction. "We expect to see a big upside in this deal for NexTech shareholders," NexTech CEO Evan Gappelberg said in the release.
Jolokia is a remote video training and live streaming software company. In 2019 its software-as-a-service platform generated US$1 million in revenue. Jolokia's clients include Merck, Toyota, Polycom and CBS.
The terms of the deal require NexTech AR, on closing, to issue to Jolokia 1 million shares of restricted stock at US$1 or CA$1.38 and, when and if certain revenue milestones are reached, issue another $4 million of restricted stock for a 12-month earnout.
"Having augmented reality (AR) seamlessly work in video training, virtual conferences or webinars provides us with competitive differentiation and a very timely addition to our AR omnichannel offerings," Gappelberg added. "With the spread of the coronavirus, all governments, learning institutions and corporations are forcing a huge paradigm shift in society to remote work, training and learning creating massive new demand, which should lead to explosive adoption for this platform."
Pete Mastin, CEO of Jolokia commented, "With the integration of NexTech’s augmented reality holograms, our Inferno platform is well positioned as the world's most advanced Video Learning Experience Platform (LXP). Combining live broadcasting with Interactive Video, Artificial Intelligence and Holograms, corporations are now able to rapidly deliver immersive, engaging learning experiences anywhere."
"We are very excited to merge with NexTech AR as we believe the combination of our Inferno Platform with NexTech's formidable tech stack will create a new generation of Learning & Development products that will gamify the learning experience in a way that has not been seen before," Mastin stated.
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